U.S. Department of Health & Human Services, Emergency Preparedness, Response, and Recovery Resources, National Resources about Family Child Care, ARP Act CCDF Discretionary Supplemental Funds, Early Childhood Systems Building Resource Guide, State and Territory Administrators Meeting Resources, Preschool Development Grants Birth through Five, Tribal Child Care Capacity Building Center, Early Childhood Development, Teaching and Learning, Early Childhood Learning and Knowledge Center (ECLKC), White House American Rescue Plan Funding Fact Sheet, Early Childhood Leaning & Knowledge Center (ECLKC), Tribal, State, and Territory Administrators Meeting Resources. The purpose of the child care stabilization grants is to support child care centers and home-based child care providers to stay open or reopen. This resource includes the session descriptions, recordings, and resources shared during the BUILD 2022 National Conference. 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. Emergency Responseincludes FAQs about temporary, short-term measures and existing flexibilities available to Lead Agencies under CCDF that may be taken during the current public health emergency in response to COVID-19. Yes. A: If you dont spend all of the grant money on items used 100% for your business, it will increase your business profit. 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. Stabilization Grants The ARP Act supplemental funds may also be used to support child care providers in accessing COVID-19 vaccines. The Child Care Stabilization Grant is considered income and is taxable. 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. Sometimes ARP Act child care stabilization funds are received by child care workers receiving federal housing assistance in such a way that they may be regarded as temporary, nonrecurring, or sporadic payments. The facility to be constructed must be used principally to provide direct child care services to children. The CCSG application is now closed. 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. 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. As this requirement applies to the date of application, a school-age program that is closed 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 fall when school reopens. The Tribal Lead Agency must request and receive approval from ACF prior to using CCDF funds for construction and major renovation. Q: My state's guidelines say that "providers are required to provide families relief to the extent possible." For example, charging less tuition to assist parents. Is the Child Care Program Stabilization Funding taxable? 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. 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. Who is Note: Applications for the Child Care Stabilization Grant Program were due by 11:59 PM on March 30, 2022. on july 23, 2021, the legislature enacted the child care and development infrastructure grant program, detailed in welfare and institutions code section 10310., a $250 million investment in the child care infrastructure across the state of california that is to be administered in the form of grants by the california department of social services Tribal lead agencies must also ensure that throughout the subgrant period, the tribally operated center meets the certification requirements, including implementing health and safety policies in line with local guidelines, continuing to pay at least the same wages and benefits to staff as those in place at the time of application, and to the extent possible, providing relief from copayments and tuition for families. Lead Agencies have fiduciary responsibility to protect the integrity of the CCDF program funds. 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. 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. 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. The $3.5 billion in supplemental CCDF CARES Act funding is subject to the same tax rules as regular CCDF funding. Programs that are awarded a grant will receive an IRS Tax Form 1099-NEC. Tax Considerations Monthly ReportingGENERAL What is the purpose of the stabilization grants? Does the plan for COVID-19 testing at child care facilities adhere to FDA recommendations (i.e., FDA-authorized equipment or certified operators administering and interpreting the tests)? CCDF Lead Agencies have the option to interpret this provision (prohibiting funding of services during the regular school day) as applying only to services when a child is physically at schooland not when a child is in a child care setting. Child Care Stabilization Grant Tax Implications (michigan.gov) 19. Afterwards it costs $99.00 a year. 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. See the video here: [video width="1390" height="1000" mp4="http://tomcopelandblog.com/wp-content/uploads/2022/02/Questions-and-Answers-about-Stabilization-Grants.mp4"][/video]. Broaden the Lead Agencys definition of protective services to permit emergency eligibility as a temporary, short-term measure. Agreements with intermediaries should include requirements for intermediaries to collect and report data to lead agencies on a regular basis, as lead agencies will be expected to report on this information to OCC. Federal law defines income for SNAP. To learn more about how to fill out W-9 information, check out this video to learn how to complete Form W 9. States determine which sources to count as income, unless a statute authorizing funding specifically imposes a requirement to include or exclude funds. These funds will help early childhood and child care providers keep their doors open and continue to provide these essential services that are critical for a strong economic recovery and a more equitable future. Qualified child care providers must certify that they will meet the three certifications for the duration of their ARP Act stabilization subgrant. Help is on the way! 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. Tribes will submit Plan amendments to describe their child care stabilization grant activities in 3.1.2j(3) Other Quality Activities of their FY 2020-2022 CCDF Plan. No, lead agencies cannot use their ARP Act stabilization set-aside funds to cover family copayments or tuition. There are two payment options: If an organization has more than one Massachusetts location, am I eligible to receive more than one grant? Sept. 1, 2021: The Office of Child Development and Early Learning (OCDEL) is making American Rescue Plan Act (ARPA) Stabilization Grants available to eligible child care providers. These grants are in addition to other pandemic-related relief funds (e.g., CARES grants, Paycheck Protection Program loans, EIDL loans). Subgrant amounts should reflect the significant resources included in the ARP ActVisit disclaimer page and be substantial enough to stabilize struggling child care providers. The Recertification section will contain the list of all applications including - Funding Month, Fund Distribution Status, Projected Amount, and Due Date. Grant reporting will be completed in the Professional Development (PD) Registry. If you need assistance, please contact the Department of Early Education and Care. All of the information and application process for the Child Care Strong program will be available here. The IRS has published information indicating that receipt of a government grant by a business is generally not excluded from the businesss gross income under the Federal Tax Code and therefore is taxable. You must claim grant funds in your business gross income. A: No. The PowerPoint from the training sessions can be found on the EEC website under the Resources section: The feedback will only be used for improving the website. 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. The NJ American Rescue Plan (ARP) Stabilization Grant is no longer accepting applications. 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. Should I apply for the Stabilization grant?, Is the money I received from the grant taxable income, even if I didnt receive Form 1099?, Is it better to pay myself or spend it on my business?. 1099 forms were mailed to programs detailing the amount of C3 funding the program received in 2021. No other family income will be affected, meaning you wont pay higher taxes on any non-grant income. With limited exceptions, home visiting does not fall within any of these allowable uses. 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. However, under the CCDBG Act and CCDF rule, regardless of whether a child is physically at school or not, it is not allowable to use CCDF for any regular education services for which students receive academic credit toward graduation or any instructional services which supplant or duplicate the academic program of any school. Self-employed FCC providers should keep separate accounts and records for business and personal finances. A conservative estimate would be to assume 15 percent for social security/Medicare plus 15 percent federal income tax and about 10 percent for state and local income tax, for a total of 40 percent or $1,400. Applications need only request the minimum information necessary to make the subgrants and meet the federal reporting requirements. Generally, annual income means all amounts, monetary or not, which go to, or on behalf of the assisted family that are not specifically excluded by HUD regulations (24 CFR 5.609(a)). Child Care Start-Up and Expansion Grant Awards a maximum of $5,000 for Child Care Homes, and a maximum of $10,000 for Child Care Centers. Lead agencies have wide discretion in how subgrant amounts are formulated, including how current operating expenses are calculated. Providers must report as taxable income all the money they receive from the Stabilization Grants Explore Tom Copeland's "Child Care Stabilization Grants and New Tax Changes for 2021." and The Tax Implications of the Child Care Stabilization Grants to learn more Resources from Tom Copeland's website View Additional Policy Resources on the Office of Child Care site. Each state, territory, and tribe may further clarify eligibility requirements, but the federal eligibility parameters indicate that licensed, registered, and legally license-exempt center-based and home-based child care providers are eligible. Federal regulations do not define unlimited access. Q: If licensed family childcare is allowed 12 kids max. 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. At their option, Lead Agencies may pay providers based on a childs enrollment rather than attendance (45 CFR 98.45(l)(2)(i)). 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. At this time, there is not a federal spending deadline for programs receiving the C3 stabilization funding. How should a program manage/account for having multiple streams of funding from EEC and other state agencies? Private information such as social security information, home addresses of employees, fingerprint records, drivers license numbers, medical information, credit card information, bank account numbers of employees, etc. 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. 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. Persons that require a reasonable modification based on language or disability should submit a request as early as possible to ensure the State has an opportunity to address the modification. Is there a deadline for spending this funding? Using Indiana's federal COVID-19 relief funding, the Office of Early Childhood and Out-of-School Learning (OECOSL) launched the Build, Learn, Grow Stabilization grant program to provide critical funding to early childhood and school-age providers, support their program's operating expenses and help them rebuild their programs for the future. 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. a Are there any program revenue guidelines to receive this stabilization funding? This only applies to Tribal CCDF Plans and not to tribes with approved Public Law 102-477 Plans. If there are multiple Programs registered, Search Provider to quickly locate the Provider. 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. What type of private information should not be submitted during the fiscal monitoring review process? Funding for the grants comes from the American Rescue Plan Act. Therefore, the lead agency may use the size of the child care program as part of their formula for estimating current operating expenses. Q: My son is a part-time assistance that I dont do payroll taxes for him. Almost. Is there a limit to the number of programs that will be funded? CCDF requirements include completion of CCDF health and safety training requirements, completion of comprehensive background checks, and other lead agency-specific requirements, such as participating in a quality rating and improvement system. 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. Mental health supports for children and employees. This builds on critical down payments on relief . Rather, lead agencies have the discretion of placing reasonable conditions or timelines with regard to reopening on child care providers who receive a subgrant. Providers are encouraged to consult with an accountant or tax expert to fully understand the tax implications of this funding. Thus, we suggest that, if any Lead Agency adopts this interpretation, the agency should check eligibility at the time of termination of benefits to determine whether the minimum 12-month eligibility requirement applies or not. How to Use Child Care Stabilization Grant Funding to Support Your Home-Based Setting Tax Resources from Home Grown The 2022 tax season is here! If a program needs to adjust its site capacity, it should contact a licensor or submit an appeal on the grant using the appeal form embedded in the application. other COVID-related expenses (including past expenses). Eligibility and award amounts will be determined at the site level based on each sites licensed capacity and will consider the communitys SVI. How much will my daycare get from the child care stabilization grant? No. You can pay yourself and then give him a bonus. 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. Mass.gov is a registered service mark of the Commonwealth of Massachusetts. This applies to regular CCDF, CARES, CRRSA, and the ARP Act supplemental discretionary funds. Personnel costs, including payroll and salaries or similar compensation for an employee (including any sole proprietor or independent contractor), employee benefits, premium pay, or costs for employee recruitment and retention. Base amount funds can be used for any approved CCDF activities and are not restricted by spending requirements. Do programs need to spend all the grant funding each month? 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. No, tribal lead agencies are limited to providing stabilization subgrants to providers within their service area. Recipients of the C3 grants are not required to spend funds within the same month they are received. When considering changes to policies and program requirements, CCDF Lead Agencies have two main options for such changes: (1) Amend CCDF Program Requirements, through a Plan Amendment if Necessary, and (2) Apply for a Waiver for Extraordinary Circumstances, with subsequent Amendment if needed. Lead agencies may reverse an application approval prior to the award of funds if something changes between the approval and award, including, but not limited to, a licensing violation or revocation, fraud, or permanent closure of a provider. Q: Where does the grant go on Schedule C? Regular email notifications will be sent when payments are released. Per CCDF regulations, assets can be self-certified by a member of the household. Payments from child care stabilization funding should generally be reported as income. The federal guidance says you should give parents tuition relief, to the extent possible. This is not a requirement. Tribal lead agencies that do not have a child care website must post it on a website associated with the tribe so child care providers know the application is legitimate and from a trusted source. If a program closes permanently, will the program need to return the grant funds? Child Care Stabilization Grant OCCRRA is excited about the opportunity to support Ohio's Child Care Stabilization Sub-Grants. This grant award increase will only be available to providers who previously received the COVID-19 Child Care Stabilization Grant at the end of 2021. Therefore, lead agencies are strongly encouraged to use that discretion to disqualify child care providers who have had their license or ability to participate in the subsidy program revoked or who are under investigation. 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. Afterwards it costs $99.00 a year. 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. American Rescue Plan (ARP) Stabilization Funds. How will I know if Im required to participate in the fiscal monitoring process? 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. This webinar for training and technical assistance providers was presented on June 24, 2021. OCFS ACF has prioritized continuity of care, as demonstrated by the graduated phase-out policy. When considering the size of a child care program, lead agencies should use enrollment and/or licensed capacity rather than attendance. 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