The purchase of such equipment may be more appropriate in circumstances where the child care provider will use it for additional technology-based learning or recreational activities in the child care program beyond virtual school instruction. You may request assistance from a member of our grants team by filling out the inquiry form below: To contact a member of our grants team, please email grants@ks.childcareaware.org. Return to Top Application Process To learn more about how to apply, please view our Application Guide or Application Walk Through Video on our website available in English, Spanish, and Vietnamese. As required at 45 CFR 98.60(d)(4)(ii),Visit disclaimer page if the lead agency does not have an applicable requirement, the regulation at 45 CFR 75.2Visit disclaimer page, Expenditures and Obligations, applies. 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. However, there may be some situations where child care stabilization funding should not be reported as income by a family child care provider (e.g., if the funding were used to cover rent, and if that did not affect a recipients net income). Lead agencies may use their stabilization fund set-asides to carry out activities to increase the supply of child care, especially for historically underserved populations. Regarding federal tax rules, please contact your tax preparer or the Internal Revenue Service for guidance. The IRS has published information indicating that receipt of a government grant by a business is generally not excluded from the businesss gross income under the Federal Tax Code and therefore is taxable. You must claim grant funds in your business gross income. Such an amendment, however, would not modify the Child Count. Now you are on the Dashboard page, scroll down to the Recertification Section. Any other cessation of work or attendance at a training or education program that does not exceed three months, or a longer period of time established by the Lead Agency. In addition, many of these individuals are working extended or irregular hours, and under stressful circumstances. Yes, essential workers are subject to the eligibility requirement that family assets do not exceed $1 million. 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. For protective services cases, the Lead Agency has the option to waive the family co-payment (in accordance with 45 CFR 98.45(k)(4)) and may waive the income eligibility requirements on a case by case basis in accordance with 45 CFR 98.20(a)(3)(ii)(A). Grant funds are not a loan that need to be paid back. 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? (45 CFR 75.2Visit disclaimer page). As noted in a prior FAQ, lead agencies have the flexibility to disregard Unemployment Compensation (UC) benefits or Economic Impact Payments (also called stimulus payments) under the CARESVisit disclaimer page, CRRSAVisit disclaimer page, or ARPVisit disclaimer page Acts as income. We remind Lead Agencies to develop emergency preparedness plans that contain guidelines for continuation of child care subsidies and child care services, which may include the provision of emergency and temporary child care services during a disaster, and temporary operating standards for child care after a disaster. Before the pandemic, there were approximately. Pursuant to the CARES Act language, CARES Act funds can be obligated in fiscal year 2020 or the succeeding two fiscal years (by September 30, 2022). Is the Child Care Program Stabilization Funding taxable? No, lead agencies are not required to spend down previous supplemental relief funding before spending the ARP Act stabilization funds. In addition, states may use CCDF to subsidize child care services for school-age children (up to age 13) that provide care and supervision in situations where schools are not otherwise providing in-person instruction and an outside source pays for instructional services that are delivered in-person in the child care setting. The IRS has published information indicating that receipt of a government grant by a business is generally not excluded from the businesss gross income under the Federal Tax Code and therefore is taxable.. Retaining documentation to support each expenditure (i.e. If the family is still eligible at redetermination, they should receive another minimum 12-month eligibility period and should not be placed on a waitlist. The dynamic environment associated with the COVID-19 pandemic has created new challenges for federal, state, and local policy makers charged with the administration of the CCDF program. 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. This does not require a waiver, but could require a Plan amendment. To learn more about how to fill out W-9 information, check out this video to learn how to complete Form W 9. Lead Agencies also have flexibility in treatment of regular UC benefits. Below is an additional series of questions and answers about the Stabilization Grant. Each state has its own guidelinescheck your local government website to confirm: Who is eligible and how to apply for the grant. Lead agencies may also consider how they can pair more flexible funding provided by the CARES Act and CRRSA Act with the more prescriptive ARP Act stabilization funds. Q: Can we pay ourselves in 2022 with grant money from 2021? Finally, Lead Agencies must inspect child care providers for compliance with fire, health, and safety standards in accordance with 45 CFR 98.42. However, because this analysis depends heavily on the individuals particular circumstances, we encourage child care workers receiving federal housing assistance to contact their Public Housing Agency (PHA) or Owner for more information. To access your existing Child Care Stabilization Grant application, please go to childcare-grants.ocfs.ny.gov. The lead agency may also choose to use funds provided by the CRRSAVisit disclaimer page to cover copayments for all eligible families. The provider must pay each employee (including lead teachers, aides, and staff that are employed by the child care provider to work in transportation, food preparation, and any other staff that the provider employs), at least the same amount in weekly wages and maintain the same benefits (such as health insurance and retirement, if applicable) for the duration of the grant. The PowerPoint from the training sessions can be found on the EEC website under the Resources section: The feedback will only be used for improving the website. This bill, based on President Biden's bold American Rescue Plan, provides $39 billion in desperately needed child care relief funding. Q: My business is an S Corporation. Paying yourself involves nothing more than making a record indicating this. are examples of personal information that should not be sent to EEC or its designee during the fiscal monitoring review. Lead agencies are strongly encouraged to make subgrants available to address personnel costs, but personnel costs are just one of the allowable uses of the subgrant funds, and, depending on the stabilization subgrant program in their state, territory, or tribe, child care providers have discretion in deciding how they use the funds. General Grant Questions Q1. 32% of employers have seen some of their employees leave the workforce due to the effects of COVID-19. A: You cant use grant money to pay someone who is not treated as your employee. These are grants offered to child care providers as a part of the American Rescue Plan and are designed to help with operating expenses. Resources to help develop communication strategies that will increase awareness and visibility of the child care stabilization grant program. The request must also certify and describe how the health, safety, and well-being of children served through CCDF will not be compromised as a result of the waiver. The Stabilization Payment Program Round 2 is a nine-month payment program that runs . She may keep the funds in the bank account as an emergency fund for later use or she can spend it as she wishes. The application must justify that the construction/major renovation activity is for the purpose of preventing, preparing for, and responding to, COVID 19. A conservative estimate would be to assume 15 percent for social security/Medicare plus 15 percent federal income tax and about 10 percent for state and local income tax, for a total of 40 percent or $1,400. Maryland State Department of Education (MSDE) Announces Second Round of Child Care Stabilization Grant Applications December 28, 2021 FOR IMMEDIATE RELEASE: MEDIA CONTACT: Lora Rakowski, lora.rakowski@maryland.gov 410-767-0486 PROGRAM CONTACT: childcaregrants.msde@maryland.gov There are only limited circumstances under which the Child Count can change. Furthermore, given finite CCDF funding to meet child care needs, the federal Office of Child Care encourages Lead Agencies to set parameters that restrict the use of CCDF for child care services during times when schools are open and children are able to attend safely in person. Why does the child care stabilization grant matter? Sept. 1, 2021: The Office of Child Development and Early Learning (OCDEL) is making American Rescue Plan Act (ARPA) Stabilization Grants available to eligible child care providers. Other investments to improve program quality such as supplies, curriculum, screening tools, etc. Applications need only request the minimum information necessary to make the subgrants and meet the federal reporting requirements. Each months report is due by the last day of the month for the previous month. All CCSG providers approved for the award between July 2021 and September 30, 2022 will be paid monthly through June 2023. With limited exceptions, the funding of home visiting programs is not an allowable use of the ARP Child Care Stabilization Funds. a Are TDOE regulated programs eligible to apply for funding? For example: The August 2022 CCSG report must be submitted by September 30, 2022. . The CCDBG Act references children who need to receive protective services, demonstrating that the intent of this language was to provide services to at-risk children, not to limit this definition to serve children in the child protective services system. Additional information is available at: https://www.irs.gov/coronavirus/employer-tax-credits. The application process and distribution structure varies from state to state, so check your local government website to confirm application deadlines and important dates. Base amount funds can be used for any approved CCDF activities and are not restricted by spending requirements. However, OCC reminds Lead Agencies that a waiver for extraordinary circumstances is only necessary if the change would not comply with federal CCDF requirements; otherwise, changes can be made through Option 1: amending requirements, through Plan amendments if necessary. (See section 2202(d)(B)(i) and (ii) of the ARP ActVisit disclaimer page.). States determine which sources to count as income, unless a statute authorizing funding specifically imposes a requirement to include or exclude funds. The CCSG application is now closed. Eligibility and award amounts will be determined at the site level based on each sites licensed capacity and will consider the communitys SVI. Yes, Lead Agencies may pay child care staff based on a childs enrollment rather than attendance. OCC has not released specific guidance that addresses all possible scenarios related to categorizing regular educational services for school-aged children that would not be eligible for CCDF subsidies. Example 3: Provider uses some of the grant to pay herself and some for business expenses. Tribal Lead Agencies must complete the full construction/major renovation application process and receive ACF approval (45 CFR 98.84). The Expenditure Tracker can be found on the EEC website under the Resources section: Commonwealth Cares for Children / Child Care Stabilization Grants | Mass.gov. OCC suggests the lead agency document the use of funds, including a written demonstration that the use of funds for incentives is directly connected to a CCDF authorized activity, and that the costs are reasonable and "ordinary and necessary" to accomplish CCDF objectives. Refer to the disbursement schedule linked within the grant dashboard in the LEAD portal. The grants cannot be used for new construction or major renovations. ACF has prioritized continuity of care, as demonstrated by the graduated phase-out policy. Within the grant attestation, a provider attests to using the funds for only items in the allowable expenditure categories. The C3 grant funds may be used for wages and benefits for child care program personnel, including compensation for any staff supporting a child care center or family child care providers and their employees. For more information, visit the CCSG FAQ section. Are the C3 Child Care Stabilization grants taxable? However, the monthly design of grant funding is to ensure that programs have the stable cash flow for ongoing operational costs that adjusts to changing conditions (i.e., staffing changes). Programs will receive this funding by the end of August 2022. Contact the C3 Help Desk: 1-833-600-2074 eecgrantsupport@mtxb2b.com. OCC recommends Lead Agencies to follow guidance established by local and state (or tribal) public health authorities regarding the closure or operation of child care facilities. No. Program highlights follow below. We encourage family child care providers to contact a tax advisor about what should and should not be reported as part of ones AGI. However, families who receive TANF cash assistance may be categorically eligible for SNAP. It is also important for providers to know that not all business expenses are fully tax deductible. Funds are in place so every eligible program can receive one grant per facility/site. Allowable changes to the tribes definition could include children who are tribal members, whose membership is pending, who are eligible for membership, and/or are children/descendants of members. If you need assistance, please contact the Department of Early Education and Care. No. CCDF requirements include completion of CCDF health and safety training requirements, completion of comprehensive background checks, and other lead agency-specific requirements, such as participating in a quality rating and improvement system. OCFS is prioritizing workforce support for child care staff by requiring that at least 75% or the Child Care Stabilization Grant 2.0 for Workforce Supports be spent on workforce support expenses. In response to the COVID-19 public health emergency and its impact on the child care industry, President Biden signed the American Rescue Plan Act of 2021 (ARP Act). The ARP Act does not address if a child care provider can terminate an employee for cause during this period. The CARES Act and the CRRSA Act do not address use of funds for construction or renovation; accordingly, regular CCDF/CCDBG rules apply. There is also not a federal limit on the total dollar amount of stabilization subgrants that a qualified provider can receive. The provider can indicate the preferred method in LEAD. 18. While we support Lead Agencies attempts to stabilize child care supply and funding during the public health emergency, under existing law and rules, it is not allowable for a Lead Agency to use regular CCDF funds to double-pay subsidies to two different providers for the same child for the same time of service. How do I treat this on my taxes? Lead Agencies have the option to waive the income eligibility requirements for children who receive (or need to receive) protective services, if determined to be necessary, on a case-by-case basis. You can use it for free during a 30 day trial period. Do programs have to complete federal grant reporting to receive C3 funding? What can EEC-licensed programs use the C3 grant funds for? Q: If I pay myself, how much will I owe in taxes? This could also include adopted children, foster children, and step-children, etc. The CCSG application is now closed. Stabilization Grants Costs claimed toward the grant must align with your business expenses reported in your federal taxes. States and territories must use at least 90 percent of their ARP Act stabilization allocations for subgrants to qualified child care providers, and tribes must use at least 80 percent of their allocations for subgrants. (42 USC 9858c(c)(2)(N)(iv); see also 45 CFR 98.21(b)) This safeguards childrens continuity of care as parents move towards economic self-sufficiency. Stipulations for what the funds can be spent on and how to properly report them. Providers must have been licensed or certified by March 11, 2021: Providers licensed after March 11, 2021 must contract with DES in order to qualify for grant funding.In addition, all providers must also: Providers are strongly encouraged to update their operational status with their Licensing authority. The date of the application approval will determine the date of the first payment based on the payment schedule. Any funds received after the date of permanent closure will need to be returned to EEC. The CARES Act and the CRRSA Act do not address the minimum 12-month eligibility period for essential workers; accordingly, regular CCDF/CCDBG rules apply. Pursuant to Title VI of the Civil Rights Act of 1964, the Americans with Disabilities Act (ADA) and other nondiscrimination laws and authorities, ADES does not discriminate on the basis of race, color, national origin, sex, age, or disability. Please note that any changes to a states definition of income to take advantage of this flexibility must be reflected in a CCDF plan amendment. CCDF funds allocated in FY2018 were available for obligation in FY2018 or FY2019. Information about stabilization grants including policy guidance, a timeline, and frequently asked questions. Allowable categories for the grant include rent, or mortgage payments, utilities, and insurance. If a lead agency chooses to provide stabilization subgrants to child care providers that are not licensed, regulated, or registered and have not previously received child care subsidies but are otherwise eligible to receive CCDF, for example relative providers, lead agencies are encouraged to collect additional details and documentation of operating expenses. Federal regulations do not define unlimited access. OCC has no plans to mandate specific oversight or compliance measures on this policy. Building Equitable Early Childhood Systems, Early Care & Education Quality Initiatives, Harnessing Opportunities for Positive Early Childhood (HOPE), The True Cost of Providing Safe Child Care During the Coronavirus Pandemic, Help is on the way! Lead Agencies have the flexibility to define full-time and part-time rates. Apply for a waiver to use CCDF funds to provide direct services to families who do not meet CCDF eligibility requirements (e.g., with income above 85% of State Median Income; see note above regarding additional flexibility regarding use of the CARES Act and CRRSA Act CCDF program funds) and/or providers who do not meet CCDF health and safety requirements. View COVID-19 resources for CCDF Lead Agencies, providers, and families. In order to be a qualified child care provider and eligible to receive a subgrant, a child care provider must either be open to provide child care services or temporarily closed due to public health, financial hardship, or other reasons relating to the COVID-19 public health emergency at the time of application. However, when families resume work, it would not be considered an increase to subsequently raise the co-payment to the original amount, provided it does not exceed the amount established at the previous eligibility determination/re-determination. Note that child care providers that are receiving stabilization subgrants from a tribal lead agency should be serving at least one Indian child, as defined by the tribal CCDF Plan. During the review process, if additional information is required or revisions are needed, the program will receive an email through LEAD asking for specific revisions. No, a program that permanently closed after 3/11/2021, is not eligible to receive an ARP Act stabilization subgrant. This is consistent with the statutory requirement at section 658E(c)(2)(S)(ii) of the Act that requires Lead Agencies to support the fixed costs of providing child care services by delinking payments from an eligible child's occasional absences due to holidays or unforeseen circumstances such as illness, to the extent practicable. Q: Are the Stabilization grant requirements the same from state to state as to what I can use the money for? Continued non-compliance puts you at risk of losing your CCSG award. 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. Review the grant payments received using LEAD. Please direct questions to ECCgrants@ode.oregon.gov or 971-707-2029 (8 a.m. to 5 p.m. Pacific Time, Monday through Friday). In each monthly submission, you will complete two sections: NOTICE: All CCSG providers must now use the NEW monthly reportlaunched beginning with the grant award for September 2022. The American Rescue Plan Act (ARPA) Child Care Stabilization Grant, which some call the daycare grant, is a federal financial assistance program recently launched by the Office of Child Care to provide $24 billion of economic relief to child care programs impacted by the COVID-19 pandemic across the country. 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