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. 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. Goods and services necessary to operate, such as materials, equipment, and technology, Comprehensive services including mental health supports for children and employees. The Expenditure Tracker can be found on the EEC website under the Resources section: Commonwealth Cares for Children / Child Care Stabilization Grants | Mass.gov. Q: Can I get the grant even if I dont have any helpers? No. As a reminder, child care providers must certify that they will pay at least the same wages and benefits to staff for the duration of the subgrant. However, Lead Agencies may apply for temporary waivers for extraordinary circumstances in response to emergency situations in accordance with 45 CFR 98.19. Previous updates can be found on the ARPA Stabilization Grants page on the Pennsylvania Key website. Care provided in emergency situations should be of the highest quality that is reasonably practicable given the particular circumstances. This tracker should not reflect expenditures made with funds other than the Child Care Stabilization Grant monies. Including additional categories of vulnerable children in the definition of protective services is only relevant for the purposes of CCDF eligibility and does not mean that those children should necessarily be considered to be in official protective service situations for other programs or purposes. Obligation and liquidation information for regular CCDF funds is described in the instructions to the ACF-696 and ACF-696T CCDF expenditure reports. Yes. CCDF funds allocated in FY2018 were available for obligation in FY2018 or FY2019. 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. However, as stated above, efforts to increase access to licensing is considered a supply building activity. This is unsustainable for many reasons. Q: Where does the grant go on Schedule C? Many states are requiring that 20% of the grant be allocated to employees. No, a budget is not required as part of the application. 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. Likewise, lead agencies have the flexibility to disregard payments made to youth in, or formerly in, foster care through the Chafee Program for Successful Transition to Adulthood as income. 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 and where will a copy of the slide deck from the C3 training sessions be available? Yes, Lead Agencies may pay child care staff based on a childs enrollment rather than attendance. This still leaves $2,100 for the provider to spend as she chooses (or save it). Agreements with intermediaries to administer the subgrants must meet CCDF requirements at 45 CFR 98.11Visit disclaimer page(PDF), including that lead agencies retain overall responsibility for the administration of the program and administrative and implementation responsibilities undertaken by the intermediary must be governed by written agreements. These are grants offered to child care providers as a part of the American Rescue Plan and are designed to help with operating expenses. This applies to regular CCDF, CARES, CRRSA, and the ARP Act supplemental discretionary funds. Therefore, a lead agency could define a lack of qualified staff or demand as an accepted reason related to the COVID-19 public health emergency for why a child care provider may be temporarily closed. Lead agencies may determine the process they use to award the subgrants and are not required to use their agencies official subgrant process. If a provider is unable to provide relief from copayments and tuition payments for all families enrolled in the program, they should prioritize doing so for families most in need of relief and target families earning below 85 percent of the State Median Income. 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. Regarding federal tax rules, please contact the Internal Revenue Service for guidance. States and territories are restricted from using CCDF funds for major renovations but can use CCDF funds for minor renovations. Lead Agencies may consider additional policies that are fair to providers and promote the financial stability of providers in response to COVID-19. In some cases, funds used to cover operating expenses may be exempt from taxation. (See section 2202(d)(B)(i) and (ii) of the ARP ActVisit disclaimer page.). Some states have decided to be very lenient in how they distribute funds, some have a rigid set of regulations, and some have yet to decide how theyll give out these funds. Share sensitive information only on official, secure websites. The portion that she uses for businesses expenses can be deducted from her taxable income, but the other half cannot, and she will need to pay taxes on that amount. and is required within 60 days of the effective date of the requirement. Q: Can I use the Stabilization grant for: Pay my employees life insurance premiums? Yes, Lead Agencies may pay full-time subsidy payment rates for school-age child care as long as the Lead Agency is not paying for time when a child is physically attending school and is not paying for any regular education services. 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. Per CCDF regulations, assets can be self-certified by a member of the household. You will always be better off financially after taking a grant, even if it increases your taxes. Therefore, the lead agency may use the size of the child care program as part of their formula for estimating current operating expenses. 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. However, this guidance may not apply to other allowable uses of these funds, such as increasing provider payments, improving payment policies, increasing wages for providers, waiving or reducing parent copayments rates, increasing income eligibility for direct services, or other allowable uses. 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. Programs should spend all funding in accordance with the specific requirements of each grant program. Finally, Lead Agencies must inspect child care providers for compliance with fire, health, and safety standards in accordance with 45 CFR 98.42. 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). A: Yes. Federal regulations do not define unlimited access. If a lead agency allows certain limitations to physical access to a child care facility, child care providers who choose to limit physical access should ensure that parents have a way of contacting the child care provider and the ability to see or take their child out of care during regular hours (e.g., some providers bring children to the entrance of the facility to meet parents). 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. While the guidance in this response focuses on how ARP stabilization funds impact the eligibility of child care workers for federal benefit programs, the same guidance would apply to funding from regular CCDF funds and supplemental funds provided under the CARES Act, CRRSA Act, and ARP Act, when the funds are used as stabilization grants or similar provider grants/stipends. Take the money! How do I treat this on my taxes? What dates matter for the child care stabilization grant? What is the SC Building Blocks Grant? Additionally, the ARP Act gave states significant discretion in determining how the child care stabilization grants would be apportioned to child care providers, and self-employment income and exclusion determinations may vary by options selected by the state. States, territories, and tribes must use the majority of these funds to provide subgrants to child care providers. Lead agencies may define what it means to be regulated or registered in the state, territory, or tribe. Lead agencies that want to exempt essential workers from the family asset test must request and have an approved waiver from ACF. However, even if it does push you into a higher tax bracket, it only means you will pay more in taxes on the grant amount that is in the higher tax bracket. However, in order to ensure compliance with the supplement not supplant requirement, OCC recommends using the ARP Act child care funds to expand the scope of the project rather than amending the funding streams described in the initial application. Yes, lead agencies may incentivize subgrant recipients to implement certain policies, such as higher pay for staff. Incentives for providers may be considered an allowable expenditure in the CCDF program if the incentives are used as part of quality improvement or other activity that meets the purposes and goals of CCDF. For providers that implement this policy, CDC recommends limiting direct contact between parents and staff. Directors, owners, administrators and/or designated fiscal staff members can access the reporting tool . Your regional office can help provide support for submitting these waiver requests. This presents an administrative challenge for using grant funds, because if you dont do it correctly you may lose your funds. If the payment is a physical check, retain a copy of the bank receipts of the deposit/cashing of the check. Because the ARP Act Supplemental CCDF Discretionary funds allocated at section 2201 can be used for the same purposes as regular CCDF funds, states and territories making major policy or programmatic changes effective before October 1, 2021, were instructed to submit amendments to their current FY 2019-2021 CCDF Plans. This prohibition applies to both the set-aside and the subgrant funds. Stabilization Help Line: 844-863-9319 Hours: Monday - Friday, 8:30 AM - 4:30 PM Commonwealth Cares for Children (C3)/ Child Care Stabilization Grants, contact the Department of Early Education and Care, Personnel costs, benefits, premium pay, and, Rent or mortgage payments, utilities, facilities maintenance and improvements, or insurance, Personal protective equipment, testing supplies, cleaning and sanitation supplies and services, or, Structural changes to the foundation, roof, floor exterior, or load-bearing walls of a facility, Extension of a facility to increase its floor area. Each approved program receives a Fixed Costs and Families Grant, based on . 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. Retaining documentation to support each expenditure (i.e. Lead agencies may use their stabilization fund set-asides to carry out activities to increase the supply of child care, especially for historically underserved populations. 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. Yes, Lead Agencies may enroll new providers to meet increased demand. Provider C receives a $3,500 grant and uses the money to pay for equipment that is used for both her business and her family (e.g., computer, television, furniture). Will a W-9 be required as part of the application? Then put aside some money in a place that is low risk (bank savings account, short-term bond fund or money market account). Rent (including rent under a lease agreement) or payment on any mortgage obligation, utilities, facility maintenance or improvements, or insurance. The date of the application approval will determine the date of the first payment based on the payment schedule. Is the child care stabilization grant taxable? Other investments to improve program quality such as supplies, curriculum, screening tools, etc. It affects how we all work, when we can work and for many, why we work. 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. Q: Can I use this grant to pay myself? A: If you dont spend all of the grant money on items used 100% for your business, it will increase your business profit. Tribal lead agencies should develop a process to verify the assurances while collecting the information to report on use of funds and data elements about the subgrants and subgrant recipients. For example, when each payment is received: What is the Expenditure Tracker tool and how can it be used? 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, which may include limiting subgrants to tribally operated centers. To qualify for the EITCVisit disclaimer page, filing units must not exceed the income/earnings eligibility threshold specific to the filing units filing status (married vs. single/head of household) and number of children (zero, one, two, or three or more). Base amount funds can be used for any approved CCDF activities and are not restricted by spending requirements. Wisconsin's child care industry continues to face a critical staffing crisis one that is expected to get worse if federal COVID relief funding isn't replaced once it runs out. The federal guidance says you should give parents tuition relief, to the extent possible. This is not a requirement. Mental health supports for children and employees. This could include physically separating checks or depositing the funds in different bank accounts. 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). A: You cant use grant money to pay someone who is not treated as your employee. It is also important for providers to know that not all business expenses are fully tax deductible. These funds are designed to support the child care market as a whole by covering business related expenses. Tribal lead agencies may request technical assistance to expand services to existing child care providers that have not previously been involved in the tribal CCDF program by contacting the OCC regional program office. In other words, lets say you paid yourself $5,000 and used $2,000 for items used 100% for your business. Forthcoming guidance will comprehensively address use of the CCDBG Supplemental funds in the American Rescue Plan Act. See the funding breakdown by state, tribe and territory, and more information about the grant on the White House American Rescue Plan Funding Fact Sheet. Lead Agencies may serve families for a longer period with CARES Act funds. Yes, if you are a for-profit organization this funding is taxable. 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. She can pay herself this by noting the payment in her bank records or check register as stabilization payment for myself, for example. NOTICE: All CCSG Providers must now use the NEW monthly report launched beginning with the grant award for September 2022. 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. The Recertification section will contain the list of all applications including - Funding Month, Fund Distribution Status, Projected Amount, and Due Date. Payments from child care stabilization funding should generally be reported as income. Child care programs may not furlough any employees while receiving the C3 grant funds. pdf Child Care Restoration Grants Funding Summary . 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. Furthermore, a child in a family that is receiving, or needs to receive, protective services is eligible for child care subsidies even if the parent is not working or in education or training. 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. You may lose your funds funds other than the child care Stabilization monies! 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