Some activities would be clearly unallowable like using CCDF to pay for teachers employed by the schools during the school day when the school is in session, but many circumstances in the COVID-19 context are more nuanced. The remaining 25% of the Child Care Stabilization Grant 2.0 funds can be used for other eligible expenses, for purposes allowed under the Federal . Child Care Start-Up and Expansion Grant Awards a maximum of $5,000 for Child Care Homes, and a maximum of $10,000 for Child Care Centers. A lock icon ( In total, the program provided over $534 million . In those circumstances, the ARP funds would not affect an individuals annual income used to calculate the individuals portion of rent. When child care providers struggle, this creates a ripple effect in the economy when families cant get childcare. Example 3: Provider uses some of the grant to pay herself and some for business expenses. Lead Agencies have the option to continue serving the child until the next eligibility redetermination, and may establish eligibility periods longer than 12 months. You will owe 15.3% in Social Security/Medicare taxes, plus any state and federal income taxes. You will probably owe no more than 40% of the grant in taxes. This may include additional eligibility criteria (that apply only at redetermination) or adjusting the graduated phase-out levels to help the lead agency manage the population served and ensure that those most in need are receiving services. 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. Child Care Stabilization Grant Questions and Answers. States, territories, and tribes must use the majority of these funds to provide subgrants to child care providers. This enhanced FMAP rate has the effect of decreasing the amount that states will be required to spend to claim their full CCDF match allotment. If the Lead Agency chooses to terminate assistance before the end of the eligibility period, the Lead Agency would be required to offer a minimum of 3 months of continued assistance. Paying yourself involves nothing more than making a record indicating this. Be open and currently serving children at time of application (this does not include temporary closures of 14 days or less). In order to change their definition of an Indian child, a Tribe would need to submit a CCDF Plan amendment (see Program Instruction CCDF -ACF-PI-2019-03 for more information about submitting CCDF Plan amendments). This page is located more than 3 levels deep within a topic. Personnel Costs (Allowable Workforce Amount Category), Equipment and Supplies for Public Health Emergency. Lead Agencies may serve families for a longer period with CARES Act funds. 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). In addition, the Coronavirus Aid, Relief, and Economic Security Act or the CARES Act (Public Law 116-136) and the Coronavirus Response and Relief Supplemental Appropriations (CRRSA) Act of 2021 (Public Law 116-260) provided a combined $13.5 billion in supplemental CCDF program funds to help State, Territory, and Tribal Lead Agencies address COVID-19 impacts, as well as some additional flexibilities for the use of those funds. No, lead agencies should not calculate current operating expenses after deducting income, including child care subsidy payments. Yes, additional child care staff or staff time to assist with cleaning and health screening is an allowable use under CCDBG as an activity to improve the quality of child care services and child safety (45 CFR 95.53(a)(10)). Such temporary changes would not impact the amount of care the child would receive. 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. 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. This still leaves $2,100 for the provider to spend as she chooses (or save it). 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). Contact your state for the answer. A: Pay yourself first. The webinar highlighted tools to help apply for the . Is there a deadline for spending this funding? Lead agencies may reverse an application approval prior to the award of funds if something changes between the approval and award, including, but not limited to, a licensing violation or revocation, fraud, or permanent closure of a provider. In emergency situations, Lead Agencies have the option of deeming certain impacted childrensuch as children of health care, emergency, or other essential workers-- to be in need of protective services and therefore, the regular CCDF eligibility requirements (e.g., income threshold) need not apply. OCC would presume any decreases in spending on child care services for eligible individuals below the amount that would have been spent under tribal law and policies in place of the date of enactment of the ARP Act (March 11, 2021) to be supplantation. Therefore, this funding is subject to the same tax rules as regular CCDF funding. The lead agency may also choose to use funds provided by the CRRSAVisit disclaimer page to cover copayments for all eligible families. Yes, CCDF funds can be used to provide some sanitation supplies to families, provided that the supplies relate to the provision of child care. 116-127) added a temporary FMAP increase of 6.2 percentage points beginning January 1, 2020, and continuing through the Coronavirus Disease 2019 (COVID-19) public health emergency period. No, CCDF funds cannot be used to purchase laptops or equipment solely for the purpose of allowing children to access virtual school instruction from home. How many months of funding will a program receive? Stabilization Help Line: 844-863-9319 Hours: Monday - Friday, 8:30 AM - 4:30 PM Yes, if you are a for-profit organization this funding is taxable. See how Compt can help you and your employees utilize these federal funds: Schedule a Demo: Our customers have figured out how: lifestyle spending accounts! 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. Eligibility Application Recertification Questionnaire Training Grant Funds Payments from child care stabilization funding should generally be reported as income. English (US) Log in. Alternatively, states could provide quality grants to child care providers for supply retention and/or quality improvement activities to benefit the full range of families, which would make the eligibility determination process for individual families immaterial. 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. OCC has interpreted the stabilization subgrants to be restricted to providers within the tribal lead agencys service area. This webinar for training and technical assistance providers was presented on June 24, 2021. Using a reimbursement model, management and reporting is easy and takes the burden off your HR team. That said, if a provider is receiving other public benefits based on income eligibility (e.g., health benefits, tax credits, student financial aid) and this grant increases their taxable income to a level that will make them no longer eligible for those benefits, they may need to look very closely at the cost versus the benefit of receiving a stabilization grant. Yes, Tribes may amend their CCDF Plan to change their definition of Indian Child. While Tribal Lead Agencies have some flexibility in defining "Indian Child," the definition must be limited to children from federally recognized Indian Tribes, consistent with the CCDBG Act's definition of Indian Tribe (45 CFR 98.2). Consistent with the existing construction or major renovation application requirements (https://www.acf.hhs.gov/occ/policy-guidance/tribal-construction-or-major-renovation), applications to use ARP Act stabilization funds had to be submitted prior to July 1, 2021. Annual Training Costs. For example, if the funding were used to cover rent, and if that did not affect a recipients net income, then the funding would not affect WIC eligibility. The CCDF rules definition of temporary job loss at 45 CFR 98.21(a)(1)(ii) includes, among other circumstances: If a parent has a non-temporary loss of job, the Lead Agency has the flexibility to allow the child to remain eligible through the end of the redetermination period. Thus, we suggest that, if any Lead Agency adopts this interpretation, the agency should check eligibility at the time of termination of benefits to determine whether the minimum 12-month eligibility requirement applies or not. Child care providers that are receiving stabilization subgrants from a tribal lead agency must be serving at least one Indian child but are not restricted from receiving stabilization subgrants from a tribal lead agency if they also serve non-Indian children or have received a stabilization subgrant from a state. The CCDF rule allows for copayments to be waived for families whose incomes are at or below the poverty level for a family of the same size, for children in protective services, or other criteria the Lead Agency establishes. Tax Considerations Monthly ReportingGENERAL What is the purpose of the stabilization grants? 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.. 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. In addition, if the Tribes service area overlaps with other Tribes service areas, Tribes should consult to ensure the children in the adjoining areas are not being served by other Tribes. 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. Regarding federal tax rules, please contact your tax preparer or the Internal Revenue Service for guidance. This will be necessary to access the various supports offered through the Department. Tribal lead agencies that do not have a child care website must post it on a website associated with the tribe so child care providers know the application is legitimate and from a trusted source. Get more information about KidKare. 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. 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. Almost two-thirds of childcare centers are serving less than 75 children and are struggling to break even. For example, a Head Start program licensed by the state as of March 11, 2021, would meet the definition of eligible provider at section 2202(a)(2)(B)Visit disclaimer page. State and territory lead agencies provided information on their implementation of stabilization grant funding plans in their FY 2022-2024 Child Care and Development Fund (CCDF) Plan, Q 4.1.8e due July 1, 2021. Snow removal snow or other weather-related services, Installing new interior, carpeting, or flooring, Replacing outdated building fixtures and general repairs, Direct deposit or electronic funds transfer, Document the amount(s) of funds received from each source separately, Review the terms of each grant program to clearly understand the allowable (and nonallowable) uses for each award. Is our grant amount $15k or $24-$52k? The terms included in the Act are broad, and lead agencies have the flexibility to define them. Rather, lead agencies have the discretion of placing reasonable conditions or timelines with regard to reopening on child care providers who receive a subgrant. Q: Does it matter how much income I made this year to use the Stabilization grant to pay myself? Examples of documentation include receipts (electronic or paper), paid invoices, payroll records, and employee timecards. 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. Lead Agencies who receive ACF grants may not use grant funds for costs that are reimbursed or compensated by other federal programs. 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? Child care programs may apply for only one of three grant opportunities. Alternatively, CCDF Lead Agencies also have the option of interpreting the prohibition as applying only during times when schools are open for in-person classes, since there may not be a regular school day during times when schools are closed for in-person classes. 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. A CCDF Lead Agency should not consider the economic impact payments (up to $1,200 for qualifying individuals and an additional $500 per child) as income for CCDF eligibility or co-payment calculations. The Child Care Stabilization Grant is considered income and is taxable. Can child care providers use the C3 grant funds to cover an individuals family subsidy co-payments or tuition? Tribal lead agencies may determine which provider types to include in their stabilization subgrant programs, as long as those providers are eligible and qualified as defined in the ARP Act. Child Care Stabilization Grants Help Desk Support: 1-833-600-2074 eecgrantsupport@mtxb2b.com User Guide - Grant Survey Frequently Asked Questions Grant Requirement Supports: Family Child Care - Training for C3 Operational Grant requirements - YouTube Center-Based - Training for C3 Operational Grant requirements - YouTube FCC programs do not have to serve 10 children at the time of application. NEW (Updated 2-23-22) I have a positive case of COVID-19 in my program, and I have applied for the COVID-19 Child Care Stabilization and Recovery Grants, now what? Providers closed due to an inactive status pending the outcome of an investigation may not recertify until the investigation has been closed and corrective action has been approved by EEC. Q: In your opinion, if I dont need the grant, should I take it? OCC will not consider construction or major renovation applications for facilities that do not provide direct child care services to children. Lead agencies may determine how they monitor child care providers receiving ARP Act stabilization funds, including what types of documentation and reporting are required. The following applications are available to eligible child care providers to apply for relief funds. IMPORTANT: Recertifications for C3 funding between the months of July 2021 and June 2022 need to be completed no later than Monday. In contrast, the child care sector provides non-parental care and early education for children. Frequently Asked Questions will be updated on this page. Providers must submit a monthly report on how all grant funds have been spent. If a program needs to adjust its site capacity, it should contact a licensor or submit an appeal on the grant using the appeal form embedded in the application. Will EEC make an unscheduled visit to conduct fiscal monitoring activities? Programs in inactive status are not able to apply or recertify their stabilization grant while they are in inactive status, as only programs that are open to serve children are eligible for stabilization grants. The $3.5 billion in supplemental CCDF CARES Act funding is subject to the same tax rules as regular CCDF funding. Lead Agencies may consider additional policies that are fair to providers and promote the financial stability of providers in response to COVID-19. [1]This amount will depend on the state in which the provider lives. Use quality dollars to provide immediate assistance to impacted providers, even if they. 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. The best way to manage your child care stabilization grant funds, White House American Rescue Plan Funding Fact Sheet, Perk Stipends: Everything You Need to Know, Download: The Ultimate Guide to Lifestyle Spending Accounts. What is fiscal monitoring as it relates to this grant program? A: You report the grant as income. EEC can then help the provider determine whether any funds need to be returned. I feel like its just more income I have to claim and pay taxes on. However, it would be allowable for a Lead Agency to use the supplemental appropriations under the Coronavirus Aid, Relief, and Economic Security (CARES) Act (Public Law 116-136) or Coronavirus Response and Relief Supplemental Appropriations (CRRSA) Act of 2021 (Public Law 116-260) to pay for both a closed provider and a new temporary replacement provider; the CARES Act and the CRRSA Act specifically say that the supplemental funds can be used to provide continued payments and assistance to child care providers in the case of decreased enrollment or closures related to coronavirus, and to assure they are able to remain open or reopen. Programs should contact an accountant or tax professional to understand more about their particular tax situation and how this guidance applies to their specific business. The program will aim to alleviate some of the economic and operational hardships caused by the COVID-19 pandemic and response. She can deduct these expenses from the taxes she owes, so she will not owe additional taxes if she receives the grant. 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 This grant award increase will only be available to providers who previously received the COVID-19 Child Care Stabilization Grant at the end of 2021. OCC encourages tribal lead agencies to request targeted technical assistance to complete a final application by the required deadline. However, lead agencies may use part of their set-aside for administration, supply building, and technical assistance to help license-exempt, non-CCDF-eligible providers become CCDF-eligible so they can be eligible to apply for ARP Act stabilization subgrants. The CCSG application is now closed. You cant deduct your mortgage payment, but you can deduct your Time-Space% of mortgage loan interest and you can depreciate your home to account for mortgage principal. In other words, there is nothing in the CARES Act that specifically exempts CCDF CARES Act funding from taxation. You can pay yourself and then give him a bonus. When do programs need to recertify their application? Q: If someone takes the grant and decides they no longer want to be in daycare, will they have to reimburse the money received? A: It will depend on your personal finances. The following examples are meant to illustrate the different ways in which a family child care provider might utilize the grant and the tax implications of each scenario. 17. The facility to be constructed must be used principally to provide direct child care services to children. Q: What impact will receiving this grant have on my Social Security benefits? If so, follow up with your state to make sure they are following their own rules. 6409, and specifies that, any refund (or advance payment with respect to a refundable credit) made to any individual under this title shall not be taken into account as income, and shall not be taken into account as resources for a period of 12 months from receipt, for purposes of determining the eligibility of such individual (or any other individual) for benefits or assistance (or the amount or extent of benefits or assistance) under any Federal program or under any State or local program financed in whole or in part with Federal funds.. By using our website you consent to the use of cookies, two-thirds of childcare centers are serving less than 75 children and are struggling to break even, American Rescue Plan Act (ARPA) Child Care Stabilization Grant requirements by state. 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. A: If you dont spend all of the grant money on items used 100% for your business, it will increase your business profit. (45 CFR 75.2Visit disclaimer page). Supporting Centers in Preparing for Child Care Stabilization Grants Lead agencies may determine the process they use to award the subgrants and are not required to use their agencies official subgrant process. The provider can indicate the preferred method in LEAD. Lead Agencies have the flexibility to define full-time and part-time rates. However, Lead Agencies may apply for temporary waivers for extraordinary circumstances in response to emergency situations in accordance with 45 CFR 98.19. CCDF funds provide financial assistance to low-income families to access child care so they can work or attend a job training or educational program, and provide resources for quality improvement of child care. Therefore, the grants could be excluded for SNAP purposes because they may end up being excluded from income as a reimbursementVisit disclaimer page,non-recurring lump sum paymentVisit disclaimer page, or cost of producing self-employment income (once spentVisit disclaimer page). The BIG Program was specifically designed to support businesses who endured lost revenue due to the COVID-19 public health emergency. 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. Finally, Lead Agencies must inspect child care providers for compliance with fire, health, and safety standards in accordance with 45 CFR 98.42. Minnesota's Child Care Stabilization Grant Program endeavors to provide child care providers with financial support to maintain operations and increase staff compensation. Continued non-compliance puts you at risk of losing your CCSG award. No. The limited exceptions where it might be appropriate to use ARP Act stabilization funds for home visiting include instances where there is a direct connection to non-parental child carefor example, providing stabilization grants to child care providers who deliver home visiting as an integral component of their child care program for children enrolled in the child care program, or using the set-aside to support home visiting services that provide resources and support specifically for family child care providers, or if the purpose of the home visiting is to provide mental health services for children in child care. The process for requesting a reasonable modification can be found at, Arizona Adult Protective Services Action Plan, Become a DES Certified Family Child Care Provider, Become a Licensed Center or Group Home Provider, Current Child Care Grants and Scholarships, DES Contracted Child Care Provider Resources, File a Complaint on a DES Child Care Provider, World Elder Abuse Awareness Day Conference, Senior Community Service Employment Program, Workforce Innovation and Opportunity Act (WIOA), Child Care Stabilization Grant Program - FAQ, CCSG Workforce Support Provider Decision Tool, Child Care Stabilization Grant Monthly Reporting Training, Equal Opportunity and Reasonable Modification, DES Family Child Care Providers (including in-home providers). They are: For the purposes of determining CCDF eligibility and co-payment amounts, a Lead Agency may treat the UC benefits from the CARES Act or the CRRSA Act differently from the way it treats regular UC benefits. As a reminder, child care providers must confirm the data used and the estimated current operating costs as part of their applications. States have flexibility to exclude ARP Act child care stabilization funding when determining eligibility for TANF, and ACF encourages states to use this flexibility. State tax rules apply. Q: Do we need to enter into KidKare if I am paying myself? Archived Meeting Resources For example, building a new entrance to better align with CDC health and safety recommendations during drop off/pick up would likely constitute a structural change and would likely not be allowable. When and where will a copy of the slide deck from the C3 training sessions be available? No, a budget is not required as part of the application. This only applies to Tribal CCDF Plans and not to tribes with approved Public Law 102-477 Plans. Child Care COVID-19 Grant Program | Arizona Department of Economic Security Arizona Department of Economic Security Your Partner for a Stronger Arizona About Services How do I? Yes. The CARES Act created three new temporary federally funded unemployment compensation programs to respond to the economic effects of the Coronavirus Disease 2019 (COVID-19). About Press Copyright Contact us Creators Advertise Developers Terms Privacy Policy & Safety How YouTube works Test new features Press Copyright Contact us Creators . There has never been this amount of federal funding dedicated to childcare providers, which makes this an incredible opportunity. 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. Are there other local resources or options for testing? Below are the steps you will need to take to obtain a listing of your paid amounts. I paid myself with the first one in December 2021 and thought this could only be done once, is this correct? Private information such as social security information, home addresses of employees, fingerprint records, drivers license numbers, medical information, credit card information, bank account numbers of employees, etc. Well answer: One of the most common questions about this federal relief program is how much is the grant? The Official Child Care Grants Assistance Portal for the State of Virginia. Lead agencies may also use other COVID relief funds (CARES Act, CRRSA ActVisit disclaimer page, and ARP Act supplemental) and regular CCDF funds to also help providers become CCDF-eligible. Q: Can I apply for the Stabilization grant if I already received the Paycheck Protection Program loan? Do programs need to spend all the grant funding each month? 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. Subgrant amounts should reflect the significant resources included in the ARP ActVisit disclaimer page and be substantial enough to stabilize struggling child care providers. ACF strongly recommends that CCDF lead agencies coordinate with the state agency that administers TANF to ensure that child care workers do not lose or experience reductions in their TANF benefits when receiving assistance from the ARP Act child care stabilization funds. Q: Are the Stabilization grant requirements the same from state to state as to what I can use the money for? Therefore, my answers below may not be the same answers your state gives you. However, since every situation is unique and states may release additional requirements or restrictions, providers should always consult a tax professional to obtain advice specific to their own unique situation.