Lead agencies may use regular CCDF, CARES, CRRSA(PDF), and ARP Act Supplemental CCDF Discretionary funds for direct child care services. Consult an accountant or tax professional to understand more about the programs particular tax situation and how this guidance applies. Any funds received after the date of permanent closure will need to be returned to EEC. In other words, there is nothing in the CARES Act that specifically exempts CCDF CARES Act funding from taxation. This only applies to Tribal CCDF Plans and not to tribes with approved Public Law 102-477 Plans. 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). For example, providing gift cards to child care providers may be allowable if the cards relate to an integral part of the child care program. January 10, 2023. Parents may need additional hours of child care during the time they are receiving or recovering from a COVID-19 vaccine. The CCSG application is now closed. No, there is not a federal limit on the dollar amount of an ARP Act stabilization subgrant. Other funds are not within the scope of this review. Programs should spend all funding in accordance with the specific requirements of each grant program. WV DHHR BFA Division of Early Care and Education is pleased to announce the availability of child care stabilization payments from October 2021 through September 2023 for child care providers that meet . Lead agencies may use part of their set-aside and other COVID-19 funds (i.e., CARES, CRRSAVisit disclaimer page, and ARP Act supplemental funds) to help providers open or reopen. If the program is closed due to schedule during the summer, it would not be eligible to apply for a subgrant during that time. 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! Note: Applications for the Child Care Stabilization Grant Program were due by 11:59 PM on March 30, 2022. The CARES Act and the CRRSA Act do not address use of funds for construction or renovation; accordingly, regular CCDF/CCDBG rules apply. 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. The application process and distribution structure varies from state to state, so check your local government website to confirm application deadlines and important dates. Please remove any contact information or personal data from your feedback. The Centers for Disease Control and Prevention (CDC) guidance suggests staggering drop-off and pick-up times and/or having a child care provider meet children outside of the facility when they arrive. This video identifies the benefits of the child care stabilization grants and the tax consequences of receiving them.We accept comments in the spirit of our . Q: If someone takes the grant and decides they no longer want to be in daycare, will they have to reimburse the money received? Learn about provider eligibility for the COVID-19 vaccination. Therefore, even if a Lead Agency opts to use CCDF to fund a child care providers caregiving and supervision of a child who is participating in remote learning, the Lead Agency cannot use CCDF to fund any instruction or services associated with academic credit or a schools program. 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. How can I best prepare for an EEC fiscal monitoring review? ) or https:// means youve safely connected to the official website. You should amend your 2020 taxes and report it as income and pay taxes on the amended return. However, Lead Agencies may apply for temporary waivers for extraordinary circumstances in response to emergency situations in accordance with 45 CFR 98.19. Some page levels are currently hidden. Within the grant attestation, a provider attests to using the funds for only items in the allowable expenditure categories. Minnesota's Child Care Stabilization Grant Program endeavors to provide child care providers with financial support to maintain operations and increase staff compensation. 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? The government has taken notice, and their answer is The Child Care Stabilization Grant, part of the American Rescue Plan Act (ARPA). The funds are designed to stabilize the child care sector and to do so in a way that rebuilds a stronger child care system that supports the developmental and learning needs of children, meets parents' needs and supports a professional workforce that is fairly and appropriately compensated for the essential skilled work that they do. 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. 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. 32% of employers have seen some of their employees leave the workforce due to the effects of COVID-19. As such, states and territories cannot use CARES Act or CRRSA Act funds for construction or major renovation. English (US) Log in. 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. Lead agencies are not required to submit a new separate report to OCC that details how they plan to spend their ARP Act stabilization 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. Therefore, this funding is subject to the same tax rules as regular CCDF funding. After September 30, 2022, no additional CCSG awards will be made. Afterwards it costs $99.00 a year. Child Care Stabilization Grant OCCRRA is excited about the opportunity to support Ohio's Child Care Stabilization Sub-Grants. Family child care providers must report any portion of the stabilization grant that they use to pay themselves as taxable income on their federal and state income tax return (unless their state chooses to make the grant not taxable). 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. (45 CFR 75.2Visit disclaimer page), Child care stabilization subgrants included in the ARP ActVisit disclaimer page are benefits to a child care provider and are considered payments made to beneficiaries of a federal program, which is the same as with child care subsidies paid under the voucher program. 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. As a reminder, CRRSA Act funds may be used to waive copays for all eligible families without a CCDF waiver. If there are multiple Programs registered, Search Provider to quickly locate the Provider. 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. Under 3 DC Coalition members Sia Barbara Ferguson Kamara, LaDon Love, and Kim Perry contributed to this blog. 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. Yes, Lead Agencies may enroll new providers to meet increased demand. The Recertification section will contain the list of all applications including - Funding Month, Fund Distribution Status, Projected Amount, and Due Date. 1099 forms were mailed to programs detailing the amount of C3 funding the program received in 2021. Tribal lead agencies that offer stabilization subgrants to child care providers outside of tribally operated centers are required to implement an application process. No, tribal COVID-19 CCDF supplemental funds, like regular CCDF program funds, cannot be used to provide direct services for families who do not meet the tribes definition of Indian child or do not live within the tribes service area. However, because other ARP funding explicitly for Head Start programs is available and Head Start programs have continued to receive federal grants during the pandemic, lead agencies should only include Head Start and Early Head Start programs in the stabilization subgrants under limited circumstances. Information and resources to help CCDF Lead Agencies and providers understand, administer, and access child care stabilization grants. (See section 2202(d)(B)(i) and (ii) of the ARP ActVisit disclaimer page.). FAQs under this heading discuss stabilization subgrants and supplemental funding in relation to Tribal-specific flexibilities. Lead Agencies have the flexibility to define full-time and part-time rates. 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? Tribal lead agencies must submit amendments to their current FY 2020-2022 CCDF Plan within 60 days of the effective date of implementation. ACF strongly encourages that lead agencies disregard this funding when determining eligibility for CCDF. EEC will notify programs in advance if a review at the program location will occur and whether the review will be conducted on-site or remotely. Providers are allowed to use the subgrant funds to continue to pay full compensation and benefits in order to meet the certification requirements. If the payment occurs via direct deposit, record the amount and date of the received payment, as well as the destination account for the funds received. Child care providers may not involuntarily furlough employees from the date of application submission through the duration of the grant. 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. Child care programs may apply for only one of three grant opportunities. This funding is subject to the same tax rules as regular CCDF funding. Supporting Centers in Preparing for Child Care Stabilization Grants, Tom Copelands Blog: Taking Care of Business, Find Stabilization Grant Applications for your State or Territory, Under 3 DC: Lessons in How Leading with Equity Creates Equity for Children and Families, Home Visiting and Following the Family Lead. Q: How do I pay myself for the hours I work in the weekends or after work hours? [1]This amount will depend on the state in which the provider lives. A: The Child Care Stabilization Grant consists of: program amount + workforce amount + add-ons. Purchases of or updates to equipment and supplies to respond to the COVID-19 public health emergency. In addition, CCDF regulations provide that 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 [45 CFR 98.67(a)]Visit disclaimer page. CCDF Federal matching funds are available to states, provided that states match those funds at the Federal medical assistance rate (FMAP). Use this button to show and access all levels. Lead agencies are encouraged to include center-based and family child care programs, as well as programs that serve school-age children. Help is on the way! 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). All Rights Reserved. The required W-9 information is included in the application, so providers do not need to download or upload a separate form. This page is located more than 3 levels deep within a topic. 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. Grant reporting will be completed in the Professional Development (PD) Registry. When and where will a copy of the slide deck from the C3 training sessions be available? 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. The CCDF final rule at 45 CFR 98.16(aa) requires the Statewide Disaster Plan (or Disaster Plan for a tribes service area) to incorporate guidelines for continuation of child care subsidies and child care services. 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. No, ARP Act stabilization subgrants cannot be used to assist in the purchase of a child care program. OCC also recommends that lead agencies be aware of allowable uses of funds and funding requirements with the multiple COVID-19 supplemental funds. CCDF lead agencies have the flexibility to decide whether to disregard many of the COVID-19 supplemental payments to individuals as income when determining eligibility for CCDF subsidies, unless treatment of those payments as income or not is specified in law. 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. Retaining documentation to support each expenditure (i.e. The Department of Children and Families (DCF) has allocated $351 million in funds for the Child Care Counts: Stabilization Payment Program to support Wisconsin's early care and education community. Lead agencies should balance the need to collect information necessary to ensure funds are being spent correctly and not overly burdening providers. Distributing the funds to employees (most states require a portion of grant funds to be paid out to employees)? 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. Paycheck Protection. Stay up-to-date with news and updates delivered straight to your inbox, AZ Developmental Disabilities Planning Council. Mass.gov is a registered service mark of the Commonwealth of Massachusetts. If the payment is a physical check, retain a copy of the bank receipts of the deposit/cashing of the check. It is important that Lead Agencies have a plan in place to perform essential functions and achieve programmatic continuity during and after an emergency or disaster for families receiving CCDF benefits. The Tribal Lead Agency must request and receive approval from ACF prior to using CCDF funds for construction and major renovation. 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. pdf Child Care Restoration Grants Funding Summary . Almost two-thirds of childcare centers are serving less than 75 children and are struggling to break even. Lead Agencies may interpret this provision (i.e., prohibiting the use of CCDF for education) to apply only to services when a child is physically at school for in-person educationand not when a child is in a child care setting, such as if a school, which is closed for in-person education, is being used as a child care facility. Lead Agencies also have flexibility in treatment of regular UC benefits. Can these funds be used to help cover the costs of consulting with a tax preparer? 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! Providers may also require additional screening processes, such as temperature checks and wearing masks, when feasible, during interactions. Payments from child care stabilization funding should generally be reported as income. If you need assistance, please contact the Department of Early Education and Care. The Child Care Stabilization Grant is considered income and is taxable. As part of their ARP Act stabilization subgrant application, child care providers must certify they will pay at least the same amount in weekly wages and maintain the same benefits for each employee throughout the duration of the subgrant. 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. 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. Stay tuned for additional updates on this page. Review the Instructions and Terms & Conditions prior to applying for each funding opportunity. I plan to discount the current family tuition evenly. Stabilization Grants 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. Eligibility Application Recertification Questionnaire Training Grant Funds On May 10, 2021, the Office of Child Care (OCC) issued guidance (CCDF-ACF-IM-2021-02) for states, territories, and tribes on requirements and recommendations for the child care stabilization funding included in section 2202 of the ARP Act. Checks payable from the business bank account to the sole proprietor/individual, Electronic statements that document funds transferred from the business bank account to the personal bank account, Documentation evidencing expenditures made with grant funds, Responses to questions about general provider information, provider accounting systems/processes, and the internal controls in place, the amount (in dollars) of the expenditure, the category of allowable uses under which the expenditure fall, the type of supporting documentation for the expenditure. If necessary, you may need to include an explanation of how the items or staff time in question fall within the allowable categories. In order to be eligible for an ARP Act stabilization subgrant, a child care provider must 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 on the date of application. A: Some states have different rules about this. 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). This applies to regular CCDF, CARES, CRRSA, and the ARP Act supplemental discretionary funds. As this requirement applies to the date of application, a school-age program that is open only 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 summer when the program reopens. State tax rules vary by State. Providers who received an initial disbursement will receive email notifications via NJCCIS when they are eligible to recertify, this process will begin in December 2022. 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. And while many child care providers have opened back up, its been anything but easy. Or updates to equipment and supplies to respond to the COVID-19 Public health.. After work hours need additional hours of child care stabilization grants training be. 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