What are the consequences if a program is selected for fiscal monitoring, and the program is unable to produce all the documentation to support its grant expenditures? 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. No. 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). American Rescue Plan (ARP) Stabilization Funds. These are some of the many questions Ive received during my February 10th webinar How to Save Money on Your 2021 Taxes. Heres a link to the recording and power point for this webinar. The plan includes $24 billion in child care stabilization grant funding for states, territories, and tribes to distribute within their state using the Child Care and Development Grant (CCDBG) formula. Rather, lead agencies define their policies to meet this requirement and report them as part of the CCDF plan (45 CFR 98.16(t)). As a reminder, CRRSA Act funds may be used to waive copays for all eligible families without a CCDF waiver. 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. Yes, Child Care Stabilization Grant funds are considered income by the IRS. Funds can be used for this purpose under "goods and services". The request is limited to an initial period of no more than two years from the date of approval, and at most, an additional one-year renewal from the date of approval of the extension. As a reminder, child care providers must confirm the data used and the estimated current operating costs as part of their applications. What happens after a program submits an application? 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. The supplemental appropriations under the CARES Act and the CRRSA Act can be used to provide child care assistance to health care sector employees, emergency responders, sanitation workers, farmworkers, and other workers deemed essential during the response to the coronavirus, without regard to the income eligibility requirements. Enter your LEAD username, enter your LEAD password, and click Login. Lead agencies have wide discretion in how subgrant amounts are formulated, including how current operating expenses are calculated. Afterwards it costs $99.00 a year. Eligibility Application Recertification Questionnaire Training Grant Funds Grants will support projects that increase licensed or operational child care slots, add slots to meet new time/day requirements of employees, or fill currently licensed (but unfilled) slots for the benefit of employees. It would also be allowable for the Lead Agency to use CCDF quality dollars to provide grants to impacted child care providers to improve quality and/or maintain the supply of child care. 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. Tribal lead agencies may use CCDF funds from more than one funding stream (i.e., Mandatory, Discretionary, Supplemental, or stabilization funds) to fund a construction or major renovation project, as indicted in their application for construction or major renovation (https://www.acf.hhs.gov/occ/policy-guidance/tribal-construction-or-major-renovation). Some page levels are currently hidden. HUD regulations specifically exclude temporary, nonrecurring, or sporadic income from the definition of annual income (24 CFR 5.609(c)(9)). KidKare is a comprehensive record keeping program that includes an accounting section that allows you to keep track of all your income and expenses. To the extent that child care workers continue to participate in TANF, SNAP, or Medicaid, child care workers would not lose WIC as a result of receiving child care stabilization funding. 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. The required W-9 information is included in the application, so providers do not need to download or upload a separate form. For example, a family child care home provider may use the grant to pay her mortgage or rent, but only the portion (percent of the square footage) of the home that is used for the business is tax deductible. Broaden the Lead Agencys definition of protective services to permit emergency eligibility as a temporary, short-term measure. 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. To paint a picture, child care centers today are facing decreasing revenues due to lower enrollment, higher expenses to operate safely during the pandemic, and severe and ongoing staffing difficulties. Providers can therefore use all or part of the grant to pay themselves. This can be done by transferring money from one bank account to another, writing yourself a check, or leaving money in one bank account and make a note indicating that this is money to pay yourself. Frequently Asked Questions will be updated on this 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? Therefore, this funding is subject to the same tax rules as regular CCDF funding. 18. Welcome to the Child Care Stabilization Grant Application System! Lead Agencies may submit a waiver to ACF to reduce the eligibility period for essential workers. A: Each state has its own rules about this. (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. These incentives are considered quality expenditures. 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. The review might include, but is not limited to, requests for: Programs will be notified by EEC if they have been chosen to participate in the fiscal monitoring process. EEC will not make an unscheduled visit to conduct fiscal monitoring activities. Providers are allowed to use the subgrant funds to continue to pay full compensation and benefits in order to meet the certification requirements. CRRSA funds (including those used for construction and major renovation) follow CCDF Discretionary funding requirements and must be obligated by September 30, 2022 and liquidated by September 30, 2023. OCC encourages tribal lead agencies to include center-based and family child care programs outside of their CCDF program, as well as programs that serve school-age children. FAQs in this category focus on questions about how to implement subgrant programs and allowable uses for these funds by the provider. Yes. The Frequently Asked Questions (FAQs) describes how Lead Agencies can support the stability of the child care sector during and after the COVID-19 public health emergency and measures to prevent, prepare for, and respond to coronavirus. Use quality dollars to provide immediate assistance to impacted providers, even if they. Grant funding amounts and distribution schedule. OCC encourages child care providers in the financial position to provide relief from copayments and tuition for families to use non-ARP Act stabilization funds to provide that relief and prioritize the relief for families with incomes below 85 percent of state median income. If the lead agency does not require school-age child care providers to complete safe sleep practices training to be eligible to serve children receiving CCDF subsidies, then school-age providers are not required to complete a safe sleep practices training in order to be eligible for ARP Act stabilization assistance. Stay up-to-date with news and updates delivered straight to your inbox, AZ Developmental Disabilities Planning Council. In addition, all tribal lead agencies were allocated $30,000 as a base amount of the ARP Act stabilization funds prior to allocating funds based on the number of children served. Eligibility and award amounts will be determined at the site level based on each sites licensed capacity and will consider the communitys SVI. 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. Self-employed FCC providers should keep separate accounts and records for business and personal finances. Legal non-licensed providers were not eligible for One-Time Supplemental Stabilization Grants. Please remove any contact information or personal data from your feedback. Purchase of a swim spa for physical therapy, exercise, relaxation? 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). Federal guidelines require that child care programs cannot reduce an employees hourly rate while participating in this grant opportunity. 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. However, Lead Agencies may apply for temporary waivers for extraordinary circumstances in response to emergency situations in accordance with 45 CFR 98.19. Yes, 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 ActVisit disclaimer page. Example 3: Provider uses some of the grant to pay herself and some for business expenses. 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? Here are the government resources for the Child Care Stabilization Grant by state: The Child Care Stabilization Grant is part of the American Rescue Plan Act (ARP Act) (Pub. Any funds received after the date of permanent closure will need to be returned to EEC. Extensive alteration of a facility such as to significantly change its function and purpose, even if such renovation does not include structural change. 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. Child care programs may not furlough any employees while receiving the C3 grant funds. These programs were extended in the CRRSA Act. Lead agencies do not have to require additional information at the time of the application as part of the certification process. Q: How do I find out where to apply for this grant? Can this include replacing lost income due to low enrollment? Regarding federal tax rules, please contact the Internal Revenue Service for guidance. Per Federal requirements outlined in The American Rescue Plan (ARP) Act of 2021 (Public Law 117-2), certify that they will meet the following requirements throughout the period of their grants: The provider will, when open and providing services, implement health and safety policies in line with guidance and orders from corresponding state, territorial, tribal, and local authorities and, to the greatest extent possible, implement policies in line with guidance from the Centers for Disease Control and Prevention (CDC). Depending on a lead agencys licensing and health and safety rules, Head Start and Early Head Start programs may meet the criteria to be considered eligible for ARP Act stabilization subgrants. How do I get the childcare stabilization grant? Such temporary changes would not impact the amount of care the child would receive. Programs that permanently close are expected to notify EEC prior to their date of closure. Top-requested sites to log in to services provided by the state. All organizations receiving funding must report this as income to your program. After an application is submitted, a confirmation email will be sent to the email address listed in the programs LEAD account profile. Why does the child care stabilization grant matter? View Additional Policy Resources on the Office of Child Care site. She may keep the funds in the bank account as an emergency fund for later use or she can spend it as she wishes. Lead Agencies should amend their CCDF Plan with respect to such changes. Thank you for your website feedback! The CCDF regulation at 45 CFR 98.20(a)(3)(ii) clarifies that the protective services category may include specific populations of vulnerable children as identified by the Lead Agency. Provider A receives a $3,500[1] grant and uses the entire amount of the grant to pay herself; the full amount of the grant will be taxable, but the provider can spend the funds on whatever she wants (e.g., pay down personal debt, save for an emergency, save for retirement, go on vacation). If approved, these waivers may temporarily exempt Lead Agencies from meeting health and background checks requirements. The CCSG Workforce Amount began with the July 2022 grant payment for providers starting the month following application approval. The deadline for grant applications has now closed. The definition of what counts as income for WIC is determined at the federal level, and payments from child care stabilization funding would generally count as income. Stabilization funds can only be used for services necessary to maintain or resume child care services. Paying another entity to handle the applications for stabilization funding does not fall into this category. 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 . We will use this information to improve this page. All of the information and application process for the Child Care Strong program will be available here. Yes, every licensed child care program site is eligible for a grant; this includes multi-site programs. After September 30, 2022, no additional CCSG awards will be made. However, OCC encourages tribal lead agencies to include center based and family child care programs outside of the tribally operated centers, as well as programs that serve school-age children. 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. Mass.gov is a registered service mark of the Commonwealth of Massachusetts. How do I treat this on my taxes? This applies to regular CCDF, CARES, CRRSA, and the ARP Act supplemental discretionary funds. Programs that close temporarily during the 12-month grant period due to inactive status (including inactive status pending an investigation) will have their payment frozen as of the date that the program became inactive in LEAD. a Are there any program revenue guidelines to receive this stabilization funding? ARP Stabilization Grants Congress awarded approximately $24 billion to the CCDF program with the goal of providing financial relief to child care providers to help defray unexpected business costs associated with the COVID-19 pandemic, and to help stabilize their operations so that they may continue to provide care. Lead agencies that want to exempt essential workers from the family asset test must request and have an approved waiver from ACF. Is the child care stabilization grant taxable? Yes, lead agencies may incentivize subgrant recipients to implement certain policies, such as higher pay for staff. State, territory, and tribal lead agencies may use the supplemental funds to provide bonuses or other financial incentives to child care providers who choose to stay open extra hours or provide care on the weekends so parents can be vaccinated. If a Lead Agency adopts this interpretation, it would be allowable (but not required) for a Lead Agency to use CCDF for child care services when children are completing remote, virtual, or online schoolwork or instruction while in child care. Lead agencies may determine the process they use to award the subgrants and are not required to use their agencies official subgrant process. Q: In your opinion, if I dont need the grant, should I take it? 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. 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). 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. Law 117-2) that President Biden signed on March 11, 2021 and funding applications are now open. Under 45 CFR 98.67(a), Lead Agencies shall expend and account for CCDF funds in accordance with their own laws and procedures for expending and accounting for their own funds. 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. In order to serve children outside of the service area established by the child count and the CCDF Plan, a Tribe would need to submit a CCDF Plan amendment to change its service area, and the new service area would have to be on or near the reservation. The provider will provide relief from copayments and tuition payments for the families enrolled in the providers program, to the extent possible, and prioritize such relief for families struggling to make either type of payment. However, ACF strongly recommends that Lead Agencies first consult with their jurisdictions public health agency, seek advice on how best to proceed, and coordinate any actions. Can I still deduct them as expenses? For most Medicaid beneficiaries, the definition of what counts as income for Medicaid is determined at the federal level and includes all income reported to the IRS as part of a tax filers Adjusted Gross Income (AGI), plus some non-taxable income sources. When receiving multiple streams of funding from EEC and other agencies, it is recommended that child care programs: How can a sole proprietor of an FCC account for and document payments to themselves? Federal law defines income for SNAP. Minnesota's Child Care Stabilization Grant Program endeavors to provide child care providers with financial support to maintain operations and increase staff compensation. The following applications are available to eligible child care providers to apply for relief funds. Continued non-compliance puts you at risk of losing your CCSG award. Not all applications are guaranteed to be approved. Please let us know how we can improve this page. OCC encourages child care providers to provide relief from tuition and copayments, if financially possible, especially for low-income families. Child care services with a tutoring or academic support component that are funded through CCDF subsidies must be paid in accordance with the Lead Agencys CCDF payment rates. When child care providers struggle, this creates a ripple effect in the economy when families cant get childcare. About On April 9, 2021, the Delaware Department of Health and Social Services and the Delaware Department of Education announced that the Delaware Early Education and Child Care Stabilization Fund will provide $66,752,816 in direct grants to support eligible early child care professionals across Delaware. 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. Care provided in emergency situations should be of the highest quality that is reasonably practicable given the particular circumstances. For tax purposes, she should reserve a portion of the grant amount to go toward her taxes. Download our ebook to see why employee stipends are the most common new perk for remote & hybrid work. 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. If a Lead Agency is unable to fully liquidate its CCDF FY2018 incurred obligations by September 30, 2020 due to the COVID-19 pandemic, there are three options to consider. Dental crown not covered by insurance? 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: If you dont spend all of the grant money on items used 100% for your business, it will increase your business profit. A: You can include it either on line one (Gross receipts) or line six (Other Income). The tutoring or academic support services do not duplicate or supplant the academic program of any public or private school, pursuant to 42 USC 9858k(b)(3) and 45 CFR 98.56(c)(3), although the services may supplement or enrich the childs education. Q: Can I pay myself in one lump sum or do I have to pay myself weekly or biweekly? Second, if the Lead Agency is unable to re-purpose the funds or does not have policies to allow for this, the Lead Agency can request a waiver of the FY2018 liquidation period due to the COVID-19 for a specified period of time in accordance with 45 CFR 98.19, requests for temporary relief from requirements. Low enrollment Internal Revenue Service for guidance your feedback with news and updates delivered straight to your inbox, Developmental. If they not need to download or upload a separate form and records for business and finances. Allowed to use the subgrant funds to continue to pay myself in one lump sum do. Is subject to the recording and power point for this webinar a swim spa for physical,! Please remove any contact information or personal data from your feedback not include structural change were not eligible for grant! Ccdf waiver an application is submitted, a confirmation email will be available here possible especially. 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