Yes, Child Care Stabilization Grant funds are considered income by the IRS. The American Rescue Plan Act of 2021 (ARP Act) (Pub. Child care providers may use subgrants to cover a range of expenses such as personnel costs; rent or mortgage payments; insurance; facility maintenance and improvements; personal protective equipment (PPE) and COVID-related supplies; training and professional development related to health and safety practices; goods and services needed to resume providing care; mental health supports for children and early educators; and reimbursement of costs associated with the current public health emergency. Paying a share of the ARP Act stabilization funds to another entity, including a bookkeeping firm, to apply for stabilization funding and assist with documentation as part of the grant management, is not an allowable use of the ARP Act stabilization funds. Per federal regulations, providers should spend the funding on one or more of the following categories: What documentation is required to support the monthly grant attestations a provider completes each month? The goal of the child care stabilization grants is to provide financial relief to child care providers to help defray unexpected business costs associated with the pandemic, and to help stabilize their operations so that they may continue to provide care. For example, a Lead Agency could increase income eligibility up to 85% of State Median Income; many Lead Agencies currently have lower thresholds. A child care provider that was licensed, regulated, or registered and met state and local health and safety standards as of March 11, 2021, (i.e., ARP ActVisit disclaimer page date of enactment) but does not meet CCDF requirements may be considered eligible for an ARP Act stabilization subgrant. States have flexibility to exclude ARP Act child care stabilization funding when determining eligibility for TANF, and ACF encourages states to use this flexibility. If there are payments not reflected in LEAD or the program has other questions, contact the C3 Help Desk at 1-833-600-2074 or eecgrantsupport@mtxb2b.com. A: Assuming the money you spend on items for your business are used exclusively for your business, the tax consequences are the same as paying yourself. Lead agencies have flexibility in determining how to best meet the goal of prioritizing certain children while complying with the eligibility requirements. Can a sole proprietor of an FCC use the grant funds to pay expenses that are associated with the program but are also inclusive of normal household bills? WV DHHR BFA Division of Early Care and Education is pleased to announce the availability of child care stabilization payments from October 2021 through September 2023 for child care providers that meet . A: Depends on what your state says. Q: Do we need to enter into KidKare if I am paying myself? Annual Training Costs. Providers receiving stabilization subgrants are not categorized as sub-recipients as defined at 45 CFR 75.2. Children do not need to be formally involved with child protective services or the child welfare system in order to be considered eligible for CCDF assistance under this category. During the current public health emergency, these essential workers cannot work from home, and many of the regular child care arrangements for their children have closed. Ready to apply? DCYF Child Care Stabilization Grant As a result of the Federal American Rescue Plan Act, funds are to be used to stabilize, support, and grow the diverse early learning workforce in a way that rebuilds a stronger child care system and expands access to affordable high-quality care. In other words, there is nothing in the CARES Act that specifically exempts CCDF CARES Act funding from taxation. Lead agencies may determine how they monitor child care providers receiving ARP Act stabilization funds, including what types of documentation and reporting are required. Applications need only request the minimum information necessary to make the subgrants and meet the federal reporting requirements. Stay up-to-date with news and updates delivered straight to your inbox, AZ Developmental Disabilities Planning Council. Yes, Lead Agencies may enroll new providers to meet increased demand. How do I treat this on my taxes? Purchase of a swim spa for physical therapy, exercise, relaxation? Note: the Office of Child Care is issuing this FAQ to lead agencies due to the time sensitive nature and urgency with ensuring that Americans can access the COVID-19 vaccine. State SNAP agencies will have to determine on a case-by-case basis what portion, if any, is excludable based on how the providers received the funds and how they are spent. Note: Applications for the Child Care Stabilization Grant Program were due by 11:59 PM on March 30, 2022. This resource includes the session descriptions, recordings, and resources shared during the BUILD 2022 National Conference. Do programs have to complete federal grant reporting to receive C3 funding? FCC programs do not have to serve 10 children at the time of application. Q: If I was closed because I had COVID and didnt have parents pay during that time, how do I record using some of the grant to cover the lost revenue? In an effort to properly balance these interests, consistent with statutory and regulatory restrictions on the use of CCDF for school, we offer the following: A CCDF Lead Agency has the option to use CCDF to pay for tutoring or academic support services, but only if meeting all of the following conditions: Yes, electronic equipment is an allowable use under CCDBG as an activity to improve the quality of center-based, home-based, or in home child care services provided for school-aged children (45 CFR 95.53(a)(10)). Therefore, while providers may choose to increase pay or offer bonuses for their staff in order to take advantage of these incentives, the provider may not opt-out of continuing to pay their staff at least the same wages. Lead Agencies have the flexibility to determine which children qualify as receiving or needing to receive protective services, and could include families affected by COVID-19 circumstances in that definition as a temporary, short-term measure. At this time, there is not a federal spending deadline for programs receiving the C3 stabilization funding. Please direct questions to ECCgrants@ode.oregon.gov or 971-707-2029 (8 a.m. to 5 p.m. Pacific Time, Monday through Friday). If approved, these waivers may temporarily exempt Lead Agencies from meeting health and background checks requirements. Persons that require a reasonable modification based on language or disability should submit a request as early as possible to ensure the State has an opportunity to address the modification. Yes, tribal lead agencies may use the entirety of their ARP Act stabilization funds on construction and major renovation. These funds are made available to Arizona through the Child Care and Development Fund (CCDF) relief funding appropriated through The American Rescue Plan (ARP) Act of 2021 (Public Law 117-2). Going forward, child care providers should continue to consider CDC guidance and follow lead agency requirements related to COVID-19, and be prepared to update processes if and when states, territories, and tribes resume pre-COVID policies for parental access to children. For Group and School Age/Center-Based (GSA)programs, the formula will use a centers total licensed capacity to calculate the base amount of the monthly payment. The ARP Act Visit disclaimer pagedoes not exempt the ARP child care stabilization subgrant funding from taxation. All programs will receive a 1099 for grant funds received. Regular CCDF funds or COVID relief funds (CARES Act, CRRSA ActVisit disclaimer page, and ARP Act supplemental) have a limit of 15 percent of funds that can be used for administrative purposes. Supporting Centers in Preparing for Child Care Stabilization Grants Well answer: One of the most common questions about this federal relief program is how much is the grant? Continued non-compliance puts you at risk of losing your CCSG award. We do note that families of essential workers would continue to be eligible for the full minimum 12-month eligibility period if the households income fell below 85 percent of SMI. ACF strongly encourages that lead agencies disregard this funding when determining eligibility for CCDF. The lead agency may also choose to use funds provided by the Coronavirus Response and Relief Supplemental Appropriations (CRRSA) ActVisit disclaimer page to cover copayments for all eligible families. The ARP Act child care stabilization funds are specifically designed to promote the stability of the child care sector. Frequently Asked Questions will be updated on this page. Lead Agencies have the flexibility to consider whether a provider has received funds from other federal or state programs in deciding how best to direct CARES Act and the CRRSA Act resources, but are encouraged to support providers through this child care crisis. Please limit your input to 500 characters. Q: I gifted some of the grant back to parents because of COVID. Yes, the ARP Act requires the lead agency to make available on the lead agencys website an application for qualified providers that includes certifications the child provider, for the duration of the subgrant, will implement certain health and safety requirements and guidance, pay full compensation to staff, and, to the extent possible, provide relief from copayments and tuition for families in their care (section 2202(d)(2)(D)(i)Visit disclaimer page). If a program closes temporarily during the 12-month grant period due to inactive status, will the program still be eligible for the grant during that month? As this requirement applies to the date of application, a school-age program that is closed during the summer would be eligible for a subgrant if the program applied for the subgrant when it opened again to provide child care services, such as in the fall when school reopens. (45 CFR 75.2Visit disclaimer page). Ive created an instructional video that answers these questions and many more. If a provider is in the financial position to provide relief from copayments and tuition for families, they should provide that relief and prioritize the relief for families with incomes below 85 percent of state median income. During the fiscal monitoring review process, will other sources of funding be reviewed outside of the C3 Child Care Stabilization Grant (such as a PPE loan)? Fiscal monitoring refers to the process EEC will follow to assess if grant award recipients are both using and documenting their use of grant funds correctly. receipts, checks), c. Reviewing C3 training materials provided by EEC. Yes, Lead Agencies can use or modify their absence policy to pay providers if programs are closed or children are absent due to COVID-19. This may include programs that braid or layer CCDF and other child care funds with Head Start or the Head Start program is the only available early care and education program in a community. Provider As household income is low enough; she may only owe the 15 percent in social security and Medicare expenses and can keep $2,975 for any use. The CCSG Workforce Amount began with the July 2022 grant payment for providers starting the month following application approval. Under 3 DC Coalition members Sia Barbara Ferguson Kamara, LaDon Love, and Kim Perry contributed to this blog. Tribes will submit Plan amendments to describe their child care stabilization grant activities in 3.1.2j(3) Other Quality Activities of their FY 2020-2022 CCDF Plan. ATTENTION: Announcing the ARP (American Rescue Plan) Act 2021 Child Care Stabilization Payments. Sometimes ARP Act child care stabilization funds are received by child care workers receiving federal housing assistance in such a way that they may be regarded as temporary, nonrecurring, or sporadic payments. When considering the size of a child care program, lead agencies should use enrollment and/or licensed capacity rather than attendance. Frequently Asked Questions related to the Child Care Stabilization Grants from the Department of Early Education & Care (EEC). Below is an additional series of questions and answers about the Stabilization Grant. Therefore, the lead agency may use the size of the child care program as part of their formula for estimating current operating expenses. In addition, many of these individuals are working extended or irregular hours, and under stressful circumstances. Within the grant attestation, a provider attests to using the funds for only items in the allowable expenditure categories. At the end of June, Minnesota's Legislature created Minnesota's Child Care Stabilization Grant Program, which began in June 2021 and will last until June 2023. I plan to discount the current family tuition evenly. These subgrants are designed to stabilize existing child care businesses, not fund the start-up or reopening of a provider not open for business. Because efforts to increase access to licensing are considered a supply building activity, funds from this set-aside could be used to create a child care licensing department for the tribe. Lead agencies that want to exempt essential workers from the family asset test must request and have an approved waiver from ACF. If a program closes temporarily during the 12-month grant period (for vacation, illness/injury, or COVID-19-related issue) will the program still be eligible for the grant during that month? The American Rescue Plan Act was signed into law in March 2021, providing South Dakota with additional funds designed to help stabilize the child care industry as the state continues to recover from the COVID-19 pandemic. We encourage family child care providers to contact their local SNAP officeVisit disclaimer page for more information. In total, the program provided over $534 million . However, tribal lead agencies who do not currently operate under a consortium may coordinate a common framework such that each tribal lead agency establishes the same requirements and procedures for the stabilization grants. Law 117-2), signed on March 11, 2021, includes $23.97 billion for child care stabilization grants to be allocated to states, territories, and Tribes based on the current Child Care and Development Block Grant (CCDBG) formula. Lead agencies are encouraged to use ARP Act supplemental funds, as well as CRRSAVisit disclaimer page and CARES Act funds, to provide relief from copayments for CCDF-eligible families and cover the portion of the child care cost ordinarily covered by copays. Q: Is money I received from the Stabilization grant taxable income? The Office of Child Care (OCC) notes that in cases where the stabilization subgrants are being awarded to qualified child care providers through intermediaries, those intermediaries are sub-recipients administering a subaward, and, as such, would be subject to rules that apply to sub-recipients, including those related to obtainind a DUNS number or UEI. Are child care providers required to provide complete relief from copayments and tuition for families in their care while they are receiving an ARP Act stabilization subgrant? CCDF Federal matching funds are available to states, provided that states match those funds at the Federal medical assistance rate (FMAP). A: You arent paying yourself for any particular hours you work. A child in a family that is receiving, or needs to receive, protective intervention is eligible for child care subsidies even if certain eligibility criteria are not met. Can I give him a $500 bonus? The CRRSA Act funds are silent to the obligation and liquidation periods. FAQs under this heading discuss stabilization subgrants and supplemental funding in relation to Tribal-specific flexibilities. There is also not a federal limit on the total dollar amount of stabilization subgrants that a qualified provider can receive. In almost every situation, a provider will benefit financially from these grants even after taxes. Programs will be prompted (via email and in LEAD) to recertify the application on the first day of the month they are recertifying. The required W-9 information is included in the application, so providers do not need to download or upload a separate form. Supporting Family Child Care to Prepare for Child Care Stabilization Grants, Help is on the way! OCC strongly encourages lead agencies to use a portion of their set-aside to cover the cost of staffing necessary to administer and process the subgrants in a timely, transparent, and effective manner. The CCSG application is now closed. The two-year grant period is scheduled to end in September 2023, meaning eligible employees may receive . English (US) Log in. Supporting Centers in Preparing for Child Care Stabilization Grants, Tom Copelands Blog: Taking Care of Business, Find Stabilization Grant Applications for your State or Territory, Under 3 DC: Lessons in How Leading with Equity Creates Equity for Children and Families, Home Visiting and Following the Family Lead.

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