No. Personnel Costs (Allowable Workforce Amount Category), Equipment and Supplies for Public Health Emergency. Tribal lead agencies may choose to award all of the ARP Act stabilization subgrants to their tribally operated centers. Tribal Lead Agencies must complete the full construction/major renovation application process and receive ACF approval (45 CFR 98.84). This bill, based on President Biden's bold American Rescue Plan, provides $39 billion in desperately needed child care relief funding. These stabilization funds are time-limited resources that are intended to stabilize the child care sector and workforce. Topics include How to prepare for the grant application. Absent a waiver, Lead Agencies must require these providers to meet health and safety requirements. 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. Please direct questions to ECCgrants@ode.oregon.gov or 971-707-2029 (8 a.m. to 5 p.m. Pacific Time, Monday through Friday). 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. Yes, lead agencies may incentivize subgrant recipients to implement certain policies, such as higher pay for staff. 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. Broaden/loosen any State-, Territory-, or Tribal-specific eligibility requirements for CCDF subsidies up to the Federal maximum allowed. General Grant Questions Q1. Therefore, this funding is subject to the same tax rules as regular CCDF funding. 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. The process for requesting a reasonable modification can be found at, Arizona Adult Protective Services Action Plan, Become a DES Certified Family Child Care Provider, Become a Licensed Center or Group Home Provider, Current Child Care Grants and Scholarships, DES Contracted Child Care Provider Resources, File a Complaint on a DES Child Care Provider, World Elder Abuse Awareness Day Conference, Senior Community Service Employment Program, Workforce Innovation and Opportunity Act (WIOA), Child Care Stabilization Grant Program - FAQ, CCSG Workforce Support Provider Decision Tool, Child Care Stabilization Grant Monthly Reporting Training, Equal Opportunity and Reasonable Modification, DES Family Child Care Providers (including in-home providers). Providers closed due to an inactive status pending the outcome of an investigation may not recertify until the investigation has been closed and corrective action has been approved by EEC. Can I put it on my 2021 tax return? In order to qualify for a child care 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. The Child Care Stabilization Grant is considered income and is taxable. The Child Care Stabilization Grant application deadline has been extended to 11:59pm on Sept. 30, 2022 As a result of the Federal American Rescue Plan Act, the Child Care Stabilization Grant (CCSG) funds are to be used to stabilize, support, and grow the diverse early learning workforce in a way that rebuilds a stronger child care system and . Tribes may also use CCDF for minor renovation without prior approval. You will owe 15.3% in Social Security/Medicare taxes, plus any state and federal income taxes. Per CCDF regulations, assets can be self-certified by a member of the household. This only applies to Tribal CCDF Plans and not to tribes with approved Public Law 102-477 Plans. These funds give them a lifeline at the perfect time. Such an amendment, however, would not modify the Child Count. Additional information for tribes that operate their CCDF program under a consolidated 102-477 plan is available here. OCC will collect information about use of stabilization funds through the CCDF Plans. Therefore, the lead agency may use the size of the child care program as part of their formula for estimating current operating expenses. A: If you dont spend all of the grant money on items used 100% for your business, it will increase your business profit. 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. Under federal rules, lead agencies must ensure that parents of children receiving Child Care and Development Fund (CCDF) assistance have unlimited access to their children while they are attending child care. Lead Agencies may serve families for a longer period with CARES Act funds. around the country, mostly small businesses, who were already operating on thin margins. Applications must be posted on the lead agencys child care website. Q: My state (Colorado) is requiring that 50% of the grant be used as tuition discounts. 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. Note that child care providers that are receiving stabilization subgrants from a tribal lead agency should be serving at least one Indian child, as defined by the tribal CCDF Plan. Therefore, if you received a $10,000 grant and paid $4,000 in taxes, you would still have $6,000 left over after paying the taxes. I feel like its just more income I have to claim and pay taxes on. dollars for the Child Care Stabilization Grants These grants are to provide financial relief to family child care providers and child care centers to cover business costs associated with COVID-19 and to help stabilize their operations This represents a substantial financial benefit to all child care programs! 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. Other investments to improve program quality such as supplies, curriculum, screening tools, etc. (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 learn more about how to fill out W-9 information, check out this video to learn how to complete Form W 9. This session was presented during BUILD 2022 National Conference. Can this include replacing lost income due to low enrollment? IMPORTANT: Recertifications for C3 funding between the months of July 2021 and June 2022 need to be completed no later than Monday. 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 supplemental appropriations under the CARES Act and the CRRSA Act can be used, among other purposes, to provide continued payments and assistance to child care providers in the case of decreased enrollment or closures related to coronavirus, and to assure they are able to remain open or reopen. OCC notes that incentives that are not connected to child care programs activities are not an allowable CCDF expenditure. The amount you pay yourself has nothing to do with how many hours you work or when you work. 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. Lead Agencies have the flexibility to establish continued assistance periods for more than 3 months. Any expenses incurred by the intermediaries that are not part of the subgrants will count against the administrative set-aside of either 10 percent for states and territories, or 20 percent for tribal lead agencies, and are subject to the same obligation and liquidation deadlines. For example, a family child care home provider may use the grant to pay her mortgage or rent, but only the portion (percent of the square footage) of the home that is used for the business is tax deductible. The Child Care Workforce Stabilization grants supply funding to help child care providers recruit and retain qualified employees as the industry recovers from the pandemic. These payments count as a rebate or advance payment of a credit that are exempted as income. 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)). Access to safe and reliable child care is the backbone of our economy and essential for employees to get back to work. 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. Use this button to show and access all levels. 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. 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. 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. 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. No, ARP Act stabilization subgrants cannot be used to assist in the purchase of a child care program. Pursuant to the CARES Act language, CARES Act funds can be obligated in fiscal year 2020 or the succeeding two fiscal years (by September 30, 2022). The tax implications of the grants depend on several factors, namely, how the provider uses the funds, the providers household income, and possibly the state in which they live. As such, states and territories cannot use CARES Act or CRRSA Act funds for construction or major renovation. Such action can only be taken if such re-purposing is allowable under the Lead Agencys rules and if the funds being repurposed meet CCDF requirements and were obligated in FY2018 or FY2019. All programs will receive a 1099 for grant funds received. However, child care providers who receive ACF grants may not use grant funds for costs that are reimbursed or compensated by other federal or state programs, including the Small Business Administrations Paycheck Protection Program (PPP), the Public Health and Social Services Emergency fund, or unemployment compensation. The request is limited to an initial period of no more than two years from the date of approval, and at most, an additional one-year renewal from the date of approval of the extension. A: No, because paying yourself does not create a deduction. Refer to the disbursement schedule linked within the grant dashboard in the LEAD portal. To the extent that child care workers continue to participate in TANF, child care workers would not lose SNAP eligibility as a result of receiving child care stabilization funding. Tom Copelands Blog: Taking Care of Business The instructions for submitting applications for construction or major renovation (available on the OCC website) require the tribal lead agency to describe the percentage of floor space that will be used to provide direct services to children. Even if I didnt get Form 1099? Lead agencies are strongly encouraged to make subgrants available to address personnel costs, but personnel costs are just one of the allowable uses of the subgrant funds, and, depending on the stabilization subgrant program in their state, territory, or tribe, child care providers have discretion in deciding how they use the funds. 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. Legal non-licensed providers were not eligible for One-Time Supplemental Stabilization Grants. 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