The application process and distribution structure varies from state to state, so check your local government website to confirm application deadlines and important dates. All Rights Reserved. In addition, the Coronavirus Aid, Relief, and Economic Security (CARES) Act (Public Law 116-136) and 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. 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. 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. Q: How do I create an emergency fund with this grant? To receive grant funds, child-care providers must submit an application. Q: Are the Stabilization grant requirements the same from state to state as to what I can use the money for? A lock icon ( Yes, CCDF lead agencies may reprogram regular CCDF, CARES, or CRRSA funds until the obligation deadlines, which is September 30, 2022, for CARES and CRRSA. This webinar, presented by child care business expert, Tom Copeland, will cover all the new tax changes affecting family child care providers for 2021.These include the Child Care Stabilization Grants, SBA forgivable loans, new child tax credit, what's deductible in the era of COVID, calculating your Time-Space% if you have been closed, and more. Please let us know how we can improve this page. A: Yes. 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. Federal guidelines require that child care programs cannot reduce an employees hourly rate while participating in this grant opportunity. You just pay yourself because you are the owner. Lead Agencies should follow their Continuity of Operations Plans (COOPs). Stay tuned for additional updates on this page. Home visiting programs typically provide services to parents and families to ensure that they have the necessary resources and skills to raise and care for their own children. Therefore, you would need to file 1099-Gs to avoid penalties for failure to file (Internal Revenue Code Section 6721) or failure to furnish (6722). As such, states and territories cannot use CARES Act or CRRSA Act funds for construction or major renovation. 9858k(b), and 45 CFR 98.56(c) of the CCDF regulations prohibit spending CCDF for any service provided to students enrolled in grades 1 through 12 during the regular school day. While each state, territory, or tribe can specify the specific uses of grant funds, the funds are intended to support providers general operating expenses, wages and benefits to employees and owners, rent, utilities, cleaning and sanitation supplies and services, and other goods and services needed to maintain or resume operations as well as mental health supports for children, families, and employees. States and territories are restricted from using CCDF funds for major renovations but can use CCDF funds for minor renovations. The webinar highlighted tools to help apply for the . This is not a loan. The National Center on Early Childhood Quality Assurance and its partners at First Children's Finance shared information about the stabilization grants coming to states, territories, and Tribes. Examples of documentation include receipts (electronic or paper), paid invoices, payroll records, and employee timecards. OCC encourages child care providers to provide relief from tuition and copayments, if financially possible, especially for low-income families. No. Self-employed FCC providers should keep separate accounts and records for business and personal finances. Each state will receive anywhere from $39 million to $2.9 billion in funding from the grant to distribute as they see fit to eligible child-care providers. To ease service delivery to these children, Lead Agencies may choose to classify them as in need of protective services for purposes of child care subsidy eligibility. This funding has been expended and programs that received a Child Care Restoration Grant in 2020 are required to input monthly reporting into the Director Portal. are examples of personal information that should not be sent to EEC or its designee during the fiscal monitoring review. If you would like to continue helping us improve Mass.gov, join our user panel to test new features for the site. 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. Q: Will getting this grant put me in a higher tax bracket? An official website of the Commonwealth of Massachusetts, This page, Child Care Stabilization Grants FAQs, is, Professional development and other investments to support staff in building educator qualifications. However, equipment, materials, and supplies that are not directly related to child care may be an unallowable use of CCDF funds. OCC has no plans to mandate specific oversight or compliance measures on this policy. The ARP Act does not impose requirements on whether to include or exclude ARP Act child care stabilization funds. 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. Start-up & Expansion. 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 (. Stabilization subgrant funds cannot be used to incentivize license-exempt, non-CCDF-eligible providers to become CCDF-eligible and therefore eligible to receive a subgrant. The process for requesting a reasonable modification can be found at Equal Opportunity and Reasonable Modification. Directors, owners, administrators and/or designated fiscal staff members can access the reporting tool . This only applies to Tribal CCDF Plans and not to tribes with approved Public Law 102-477 Plans. See the funding breakdown by state, tribe and territory, and more information about the grant on the. Lead agencies may determine how they monitor child care providers receiving ARP Act stabilization funds, including what types of documentation and reporting are required. ACF strongly encourages that lead agencies disregard this funding when determining eligibility for CCDF. What dates matter for the child care stabilization grant? 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. Continued non-compliance puts you at risk of losing your CCSG award. This work may include, but is not limited to, designing and reviewing subgrant applications, providing support in estimating current operating expenses, distributing subgrant funds, and monitoring the use of subgrant funds. If after viewing this video and reading these questions and answers, you still have questions, feel free to send me an email at tomcopeland@live.com. 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. The application must justify that the construction/major renovation activity is for the purpose of preventing, preparing for, and responding to, COVID 19. If the program is closed due to schedule during the summer, it would not be eligible to apply for a subgrant during that time. These are grants offered to child care providers as a part of the American Rescue Plan and are designed to help with operating expenses. CCDF funds allocated in FY2018 were available for obligation in FY2018 or FY2019. 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. About Press Copyright Contact us Creators Advertise Developers Terms Privacy Policy & Safety How YouTube works Test new features Press Copyright Contact us Creators . The two components are intended to grant early care and learning programs funds to facilitate high quality early childhood education at its true cost and increase compensation to staff. Review the grant payments received using LEAD. 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)). Questions are grouped in the drop-down menu below into four major categoriesARP Stabilization Grants, Supplemental Funds, Tribes, and Emergency Responseand each category has subcategories. You should amend your 2020 taxes and report it as income and pay taxes on the amended return. 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. 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. Can these funds be used to help cover the costs of consulting with a tax preparer? 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. We encourage family child care providers to contact their local SNAP officeVisit disclaimer page for more information. The Ohio Department of Job and Family Services (ODJFS), Office of Family Assistance, was approved through the State of Ohio Controlling Board and Legislative Appropriation to spend these federal stabilization relief funds. Q: If I transferred money to pay myself earlier but sometimes forgot to make a note, can I go back and fix it? Q: What if I paid myself with this grant and then later realize that I can use it for items used 100% for my business. But, they will reduce your federal and state taxable income. However, lead agencies do have flexibility in defining unlimited access, and we are deferring to lead agency interpretation, as long as it is recognizably reasonable to the average person, as to how to maintain this policy while balancing health and safety concerns related to the Coronavirus Disease 2019 (COVID-19) public health emergency. The American Rescue Plan Act of 2021 (ARP Act) (Pub. A: Colorado says they encourage providers to give 50% to parents. Federal Pandemic Unemployment Compensation, which provides an additional $300 per week to individuals who are collecting regular state or Federal UC, through weeks of unemployment ending on or before March 14, 2021. Attestation: You have attested, when open and providing services, to implement policies in line with guidance and orders from state and local authorities and to the greatest extent possible the (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. To prepare for an EEC fiscal monitoring review, you should consider: a. Documenting all expenditures made with grant funds by using the recommended Expenditure Tracker or a similar tool, that includes at a minimum: b. Child care providers also may not involuntarily furlough employees employed on the date of submission of the application. 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. Yes, if you are a for-profit organization this funding is taxable. Apply for a Waiver for Extraordinary Circumstances: If the Lead Agency needs relief from specific CCDF requirements (e.g., a reduction in 12-month eligibility for impacted families) due to the COVID-19 situation, the Lead Agency may apply for a waiver for Extraordinary Circumstances. 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. Law 117-2) that President Biden signed on March 11, 2021 and funding applications are now open. 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. Lead agencies should use the definition they use for obligations for regular CCDF funds when determining whether ARP Act stabilization funds are obligated. Child care stabilization grants were appropriated to states in the American Rescue Plan Act (Public Law 117-2) to help stabilize the child care sector via subgrants to child care providers due to the COVID-19 pandemic. The following applications are available to eligible child care providers to apply for relief funds. Yes, Lead Agencies may enroll new providers to meet increased demand. Q: If I use the grant for my IRA, can I deduct 100% of this on my taxes? For example, providing families with sanitation and cleaning supplies to use at home would have little to do with the provision of child careand, therefore, would be an unallowable CCDF expenditure. Stabilization Grants Use this button to show and access all levels. 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. The eligibility requirements defined at section 98.20(a)Visit disclaimer page of the CCDF regulations have separate financial eligibility requirements one for income and one for assets. All of the information and application process for the Child Care Strong program will be available here. How can I best prepare for an EEC fiscal monitoring review? Some examples include: What are the requirements and restrictions for how the grant funds can be used for payroll? 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)). The grants cannot be used for new construction or major renovations. Will a W-9 be required as part of the application? 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. 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. The allowable uses of subgrant funds are the same for tribal child care providers as for state and territory providers, except that tribal lead agencies may use any of the stabilization funds for construction or major renovations. 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. If child care workers were to lose access to TANF as a result of the stabilization funding, this would be counter to the goals of that funding. Payments from child care stabilization funding should generally be reported as income. Contributions to an IRA will not reduce your Social Security/Medicare taxes. Applications need only request the minimum information necessary to make the subgrants and meet the federal reporting requirements. 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