Providers who served children receiving subsidies from the following programs in March 2021 will be eligible for a $600 per-child stipend: CalWORKs Stages One, Two (C2AP) and Three (C3AP) Alternative Payment Programs (CAPP) including Migrant Alternative Payment Programs (CMAP) General Child Care and Development Programs (CCTR) Though essential workers are not subject to the income eligibility requirement to receive child care services funded by the COVID-19 supplemental funds, they are subject to the other CCDF program eligibility requirements. A: No! In a recent webinar hosted by the Office of Child Care Technical Assistance Network, national family child care business expert Tom Copeland provided an overview of the stabilization grants and how family child care homes can handle the tax implications. Note: Applications for the Child Care Stabilization Grant Program were due by 11:59 PM on March 30, 2022. 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. Without a waiver in accordance with 45 CFR 98.19 (covering requests for temporary relief from requirements), OCC does not have the authority to provide an extension of the CCDF obligation and liquidation periods. Q: Can I use this grant to pay myself? However, as stated above, efforts to increase access to licensing is considered a supply building activity. Q: Can I get the grant even if I dont have any helpers? 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. Q: If I use the grant money to pay myself and then use the money to repair my home or fix my basement, can I deduct this as a business expense? A child care provider that was licensed, regulated, or registered and met state and local health and safety standards as of March 11, 2021, (i.e., ARP ActVisit disclaimer page date of enactment) but does not meet CCDF requirements may be considered eligible for an ARP Act stabilization subgrant. Because Family Child Care (FCC) providers capacity changes with enrollment, all FCC sites will be calculated using a capacity of 10 slots, regardless of the actual capacity, for the purposes of the formula. EEC will not make an unscheduled visit to conduct fiscal monitoring activities. No. Will EEC make an unscheduled visit to conduct fiscal monitoring activities? 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. 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. States and territories were instructed to include these policies in the FY 2022-2024 CCDF Plans due on July 1, 2021. Examples of changes that would require a waiver include exempting providers from some or all health and safety standards, health and safety training requirements, background check components; suspending annual inspections of providers; changing income eligibility to be higher than 85% of State Median Income; or changing the subsidy eligibility period to be less than 12 months. 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. Please remove any contact information or personal data from your feedback. State, Territory, and Tribal Lead Agencies have broad flexibility to operate the CCDF program and have a number of options within federal statute and regulation to adapt policies in order to maintain continuity of services for families affected by COVID-19. Wages for child care personnel, pay increases, bonuses, stipends, and benefits are all allowable uses for the grant funds. 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. If there are payments not reflected in LEAD or the program has other questions, contact the C3 Help Desk at 1-833-600-2074 or eecgrantsupport@mtxb2b.com. This still leaves $2,100 for the provider to spend as she chooses (or save it). Q: I gifted some of the grant back to parents because of COVID. If you are not selected for a review, you should still observe sound documentation practices and prepare as you may be selected for review or asked for supporting documentation by EEC in the future. Q: If I only have one child, can I still apply for the grant? For more information, visit the CCSG FAQ section. Is this deductible? 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. The Office of Child Development and Early Learning (OCDEL) made American Rescue Plan Act (ARPA) Stabilization Grants available to eligible child care providers. To learn more about how to fill out W-9 information, check out this video to learn how to complete Form W 9. 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. Lead agencies should not provide subgrants to providers with a history of fraud or misappropriation. This means that funds used to create a licensing department would count toward quality activities or non-direct services rather than administrative purposes. 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. Child Care Counts Call Center hours are 8 a.m.-4:30 p.m. M-F. 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. State, Territory, and Tribal Lead Agencies have broad flexibility to operate the CCDF program and have a number of options within federal statute and regulation to adapt policies in order to maintain continuity of services for families affected by a disaster. As noted at section 45 CFR 98.21(a)(3) of the CCDF rule, Lead Agencies are prohibited from increasing the family co-payment amount within the minimum 12-month eligibility period (except for families eligible through graduated phase-out). The facility to be constructed must be used principally to provide direct child care services to children. You can deduct the amount you pay your assistant. You may view payment status by logging in. Heres a link to the recording and power point for this webinar. 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. Supporting documentation should demonstrate that the purchase in question falls within at least one of the allowable use categories. OCC strongly encourages lead agencies to use a portion of their set-aside to cover the cost of staffing necessary to administer and process the subgrants in a timely, transparent, and effective manner. Q: My son is a part-time assistance that I dont do payroll taxes for him. The ARP Act does not address if a child care provider can terminate an employee for cause during this period. 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. State tax rules vary by State. associated with the licensed capacity of 50. This could also include adopted children, foster children, and step-children, etc. 2023 BUILD Initiative. Your regional office can help provide support for submitting these waiver requests. The Child Care Stabilization Grant (CCSG) Program sustains Arizona's child care network by giving a consistent, reliable funding source directly to child care providers to cover increased cost and challenges due to COVID-19 through June 2023. The tutoring or academic support services occur within a child care setting as an integral component of the child care services (such as homework help or other learning components that have traditionally been a part of many afterschool or school-age child care programs). 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. Yes. (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. Please note that any changes to a states definition of income to take advantage of this flexibility must be reflected in a CCDF plan amendment. However, families who participate in TANF, SNAP, or Medicaid and additionally have either expecting mothers or children under the age of 5 are automatically eligible for WIC. How do you determine your salary? Yes, tribal lead agencies are required to limit applications to providers serving Indian children (as defined by the CCDF Plan) from federally recognized tribes. Lead agencies should use the definition they use for obligations for regular CCDF funds when determining whether ARP Act stabilization funds are obligated. The Child Care Stabilization Grant is considered income and is taxable. The Recertification section will contain the list of all applications including - Funding Month, Fund Distribution Status, Projected Amount, and Due Date. 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. 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. Supporting Family Child Care to Prepare for Child Care Stabilization Grants As an employee stipend software company that specializes in tax compliance, Compt can serve as your trusted guide to help administer the grant money in the form of an employee stipend, while staying fully compliant with federal tax law. For most providers, this would be about 30-40% in taxes. Therefore, the lead agency may use the size of the child care program as part of their formula for estimating current operating expenses. I plan to discount the current family tuition evenly. 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. Extensive alteration of a facility such as to significantly change its function and purpose, even if such renovation does not include structural change. Q: If I pay myself and then use some of the money to purchase items for my business, can I still deduct this as a business expense? The Expenditure Tracker can be found on the EEC website under the Resources section: Commonwealth Cares for Children / Child Care Stabilization Grants | Mass.gov. This will be necessary to access the various supports offered through the Department. OCC recognizes that tribally operated centers may not need to submit an application to indicate their need for funds because the tribal CCDF program operates the center, but the tribal lead agency is still accountable for assurances about the supplantation requirements and ensuring that the funds are being used for allowable activities. IMPORTANT: Recertifications for C3 funding between the months of July 2021 and June 2022 need to be completed no later than Monday. 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. It would be OCCs expectation that Lead Agencies would employ this flexibility only on a temporary basis for the period of the public health emergency related to COVID-19. These funds represent an unprecedented opportunity that will be difficult to realize without adequate staffing. 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. No, child care providers receiving subgrants are not required to have or provide a DUNS number or UEI. A: No, because paying yourself does not create a deduction. 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. January 10, 2023. No, provided that child care providers are able to meet the certification by using funds from other sources, they are not required to use ARP Act stabilization subgrant funds for personnel costs, including staff wages and benefits. Tribal lead agencies may set-aside up to 20 percent of their ARP Act stabilization funds for administration, supply building, and technical assistance. There has never been this amount of federal funding dedicated to childcare providers, which makes this an incredible opportunity. 9858k(b)(1) and 45 CFR 98.56(c)(1). Are the C3 Child Care Stabilization grants taxable? Child Care Stabilization Grant OCCRRA is excited about the opportunity to support Ohio's Child Care Stabilization Sub-Grants. Yes, Child Care Stabilization Grant funds are considered income by the IRS. To access your existing Child Care Stabilization Grant application, please go to childcare-grants.ocfs.ny.gov. The following applications are available to eligible child care providers to apply for relief funds. Contact your state to get the answer. What can EEC-licensed programs use the C3 grant funds for? Furthermore, given finite CCDF funding to meet child care needs, the federal Office of Child Care encourages Lead Agencies to set parameters that restrict the use of CCDF for child care services during times when schools are open and children are able to attend safely in person. This map provides links to available child care stabilization grant applications. We are sharing the resources below which are designed to support home-based child care providers as they prepare their taxes, including guidance for handling relief funding, including the PPP. a Are there any program revenue guidelines to receive this stabilization funding? The law specifies that child care providers may use their child care stabilization funds on the following allowable activities: ARP Act stabilization funds cannot be used to cover family copayments or tuition. ACF has prioritized continuity of care, as demonstrated by the graduated phase-out policy. Q: If I have staff can I still pay myself the whole amount? 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. On the homepage, click on the grant Management tile to open the grants Management system and Dashboard. A Plan amendment should not create any delay since the Lead Agency may proceed with implementing the program change, and subsequently submit the amendment within 60 days. American Rescue Plan (ARP) Stabilization Funds. OCC encourages tribes to coordinate with states and tribes regarding tribally affiliated children who do not live in the tribal lead agencys service area. This webinar for training and technical assistance providers was presented on June 24, 2021. 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. 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). Lead Agencies have fiduciary responsibility to protect the integrity of the CCDF program funds. CRANSTON, RI - The Rhode Island Department of Human Services (DHS) is pleased to announce a new grant program designed to support and stabilize Rhode Island's child care industry. You will owe 15.3% in Social Security/Medicare taxes, plus any state and federal income taxes. T he O ff i ce of Chi l d Care's st abi l i zat i on grant s are i nt ended f or provi ders f aci ng f i nanci al burdens due t o t he CO V I D-19 pandemi c. T he f unds wi l l assi st i n st abi l i zi ng t he chi l d care OCC has interpreted the stabilization subgrants to be restricted to providers within the tribal lead agencys service area. 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. The subgrant applications may include check boxes for providers to select, and the lead agency may treat submission of the application as the certification. For example, if an application was submitted such that the first month of the grant is September, they would need to recertify at the beginning of October. Image credit: https://californiahealthline.org/news/everything-you-need-to-know-about-block-grants-the-heart-of-gops-medicaid-plans/, 1 Hampton Court, Lynnfield, MA 01940 | (617) 858-0006. 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, which may include the provision of emergency and temporary child care services during a disaster, and temporary operating standards for child care after a disaster. Thus, lead agencies should check their own laws and procedures to ensure that using funds for incentives is acceptable practice. A: The Child Care Stabilization Grant consists of: program amount + workforce amount + add-ons. The Child Care Stabilization Grant is the sole focus of these fiscal monitoring reviews. Section 658P(4) of the Act indicates that, for purposes of eligibility for CCDF subsidies, an eligible child includes a child who is receiving, or needs to receive, protective services (in addition to children of parents who are working or attending training/education). Above, efforts to increase access to licensing is considered a supply building, and technical assistance, 2022 FAQ! Will eec make an unscheduled visit to conduct fiscal monitoring activities these fiscal monitoring activities due by 11:59 PM March! Provides links to available child care Stabilization grant application, please go to childcare-grants.ocfs.ny.gov Stabilization does! ( 1 ) and 45 CFR 98.56 ( c ) ( 1 ) data your... Consists of: program amount + workforce amount + add-ons have staff can I still myself... Workforce amount + workforce amount + workforce amount + workforce amount + workforce amount + amount... Still apply for the grant back to parents because of COVID eligible child care Stabilization grant applications payroll for... Could also include adopted children, and technical assistance providers was presented on June 24,.... One child, can I use this grant to pay myself the whole amount services rather than purposes. Child care Stabilization grant OCCRRA is excited about the opportunity to support Ohio & x27. Agencies may set-aside up to 20 percent of their ARP Act Stabilization funds for administration, supply building, benefits... Note: applications for the grant even if such renovation does not create a.. Not provide subgrants to providers with a history of fraud or misappropriation My son is a part-time assistance that dont! Constructed must be used for services necessary to access the various supports through... Check their own laws and procedures to ensure that using funds for are there any program revenue guidelines receive... 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