NOTICE: All CCSG Providers must now use the NEW monthly report launched beginning with the grant award for September 2022. No. In response to the COVID-19 public health emergency and its impact on the child care industry, President Biden signed the American Rescue Plan Act of 2021 (ARP Act). The ARP child care stabilization funds would be considered self-employment income for the child care providers since they are not universally exempted from SNAP eligibility determinations by law. Subgrant amounts must be based on a child care providers stated current operating expenses, including costs associated with providing or preparing to provide child care services during the pandemic, and, to the extent practicable, cover sufficient expenses to ensure continuous operations for the intended period of the subgrant. The required W-9 information is included in the application, so providers do not need to download or upload a separate form. OCC encourages tribes to coordinate with states and tribes regarding tribally affiliated children who do not live in the tribal lead agencys service area. Further, providers caring for infants must be aware of, and responsive to, parents who choose to breastfeed while their child is in care (e.g., by making arrangements such as providing space specifically for this purpose). What can EEC-licensed programs use the C3 grant funds for? However, adding plexi-glass barriers to an existing entry way or entrance would likely be allowable. Below is an additional series of questions and answers about the Stabilization Grant. Thus, lead agencies should check their own laws and procedures to ensure that using funds for incentives is acceptable practice. But childcare providers have been really struggling to stay afloat, and many have resorted to taking on personal debt to get by or temporarily closing altogether. That said, if a provider is receiving other public benefits based on income eligibility (e.g., health benefits, tax credits, student financial aid) and this grant increases their taxable income to a level that will make them no longer eligible for those benefits, they may need to look very closely at the cost versus the benefit of receiving a stabilization grant. Child Care Stabilization Grant Tax Implications (michigan.gov) 19. The amount you pay yourself has nothing to do with how many hours you work or when you work. To show payments from the business to the person, documentation may include: Records of self-payments of grant funds from the business should be consistent with personal records for tax purposes. 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. A: If you pay yourself with the grant and then buy items used 100% for your business, you wont owe any taxes on the amount you use the grant for this purpose. Yes, tribal lead agencies may use the entirety of their ARP Act stabilization funds on construction and major renovation. Other investments to improve program quality such as supplies, curriculum, screening tools, etc. In addition, many of these individuals are working extended or irregular hours, and under stressful circumstances. Programs that are awarded a grant will receive an IRS Tax Form 1099-NEC. Please remove any contact information or personal data from your feedback. Minnesota's Child Care Stabilization Grant Program endeavors to provide child care providers with financial support to maintain operations and increase staff compensation. Can these funds be used to help cover the costs of consulting with a tax preparer? Refer to the disbursement schedule linked within the grant dashboard in the LEAD portal. 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! 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. Per CCDF regulations, assets can be self-certified by a member of the household. The lead agency may use the ARP Act supplemental CCDF Discretionary funds to reduce or waive copayments for a subpopulation of families eligible to receive CCDF. States and territories must use at least 90 percent of their ARP Act stabilization allocations for subgrants to qualified child care providers, and tribes must use at least 80 percent of their allocations for subgrants. 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. CCDF Federal matching funds are available to states, provided that states match those funds at the Federal medical assistance rate (FMAP). Stabilization Grant Q: Is the Stabilization grant taxable income? Q: Are the Stabilization grant requirements the same from state to state as to what I can use the money for? Any other cessation of work or attendance at a training or education program that does not exceed three months, or a longer period of time established by the Lead Agency. There is also not a federal limit on the total dollar amount of stabilization subgrants that a qualified provider can receive. OCFS is prioritizing workforce support for child care staff by requiring that at least 75% or the Child Care Stabilization Grant 2.0 for Workforce Supports be spent on workforce support expenses. Programs that are awarded a grant will receive an IRS Tax Form 1099-NEC. 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. This tracker should not reflect expenditures made with funds other than the Child Care Stabilization Grant monies. Yes, tribal lead agencies may use ARP Act stabilization funds for an existing multiyear construction project. If necessary, you may need to include an explanation of how the items or staff time in question fall within the allowable categories. The date of the application approval will determine the date of the first payment based on the payment schedule. Other funds are not within the scope of this review. Based on currently available funding, EEC anticipates funding will be available to provide grants from July 2022 through December 2022. The application process and distribution structure varies from state to state, so check your local government website to confirm application deadlines and important dates. Q: My son is a part-time assistance that I dont do payroll taxes for him. The Office of Child Care (OCC) notes that in cases where the stabilization subgrants are being awarded to qualified child care providers through intermediaries, those intermediaries are sub-recipients administering a subaward, and, as such, would be subject to rules that apply to sub-recipients, including those related to obtainind a DUNS number or UEI. If a Lead Agency adopts this interpretation, it would be allowable (but not required) for a Lead Agency to use CCDF for child care services when children are completing remote, virtual, or online schoolwork or instruction while in child care. Q: Can I pay myself in one lump sum or do I have to pay myself weekly or biweekly? Is this deductible? Lead Agencies may temporarily lower a familys co-payment while the family is experiencing temporary or non-temporary job loss. Applications submitted after March 30 will generally not be considered. This map provides links to available child care stabilization grant applications. If child care workers were to lose access to TANF as a result of the stabilization funding, this would be counter to the goals of that funding. Providers can use the funds to pay prior program expenses incurred after January 31, 2020. Is the Child Care Program Stabilization Funding taxable? Provider B receives a $3,500 grant and uses it to pay expenses for her business that she would not otherwise pay (e.g., extra employee wages, cleaning supplies, toys). A lock icon ( Section 658M(b) of the Child Care and Development Block Grant (CCDBG) Act, 42 U.S.C. Q: My state (Colorado) is requiring that 50% of the grant be used as tuition discounts. Examples of documentation include receipts (electronic or paper), paid invoices, payroll records, and employee timecards. 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. The CARES Act and the CRRSA Act do not address the minimum 12-month eligibility period for essential workers; accordingly, regular CCDF/CCDBG rules apply. 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. Many states are requiring that 20% of the grant be allocated to employees. 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. 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. Lead Agencies may submit a waiver to ACF to reduce the eligibility period for essential workers. Under 3 DC Coalition members Sia Barbara Ferguson Kamara, LaDon Love, and Kim Perry contributed to this blog. Before the pandemic, there were approximately. 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. The CCSG application is now closed. You can use it for free during a 30 day trial period. Then put aside some money in a place that is low risk (bank savings account, short-term bond fund or money market account). This could include physically separating checks or depositing the funds in different bank accounts. If a Lead Agency obligated funds during that time on activities that meet CCDF requirements and were not charged to their FY2018 CCDF allocation, it could re-purpose those funds and instead claim the obligation against uncommitted funds for FY2018 and liquidate those funds in order to meet the liquidation deadline for FY2018. a Are there any program revenue guidelines to receive this stabilization funding? OCC is not imposing a specific timeframe for when a temporarily closed provider due to COVID-19 at the time of application must reopen. 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. 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? Heres a link to the recording and power point for this webinar. 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. 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 BIG Program was specifically designed to support businesses who endured lost revenue due to the COVID-19 public health emergency. How do you determine your salary? 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. The use of home visiting services to refer/connect children to early care and education services is not by itself a sufficient connection to non-parental child care services to justify the use of ARP Act stabilization funds (or other CCDF funds) for home visiting services. In addition, the CCDF funds can be used to increase provider payments and bonuses to child care workers during the COVID-19 health emergency and to provide certain types of care (e.g., infant and toddler care or non-traditional hours). CARES Act funds (including those used for construction and major renovation) must be liquidated by September 30, 2023. This will be necessary to access the various supports offered through the Department. Home visiting programs typically provide services to parents and families to ensure that they have the necessary resources and skills to raise and care for their own children. What if I am not selected for a fiscal monitoring review? 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. These laws provided a combined $13.5 billion in supplemental CCDF funds to help State, Territory, and Tribal Lead Agencies address COVID-19 impacts, as well as some additional flexibilities for the use of those funds. These are grants offered to child care providers as a part of the American Rescue Plan and are designed to help with operating expenses. If the Lead Agency chooses to terminate assistance before the end of the eligibility period, the Lead Agency would be required to offer a minimum of 3 months of continued assistance. For example, lead agencies may provide stipends to child care providers to cover the cost of transportation to vaccine sites and paid time off to receive the vaccine and recover from any side effects. receipts, checks), c. Reviewing C3 training materials provided by EEC. Retaining documentation to support each expenditure (i.e. Apply for a Waiver for Extraordinary Circumstances: If the Lead Agency needs relief from specific CCDF requirements (e.g., a reduction in 12-month eligibility for impacted families) due to the COVID-19 situation, the Lead Agency may apply for a waiver for Extraordinary Circumstances. Find Stabilization Grant Applications for your State or Territory. Information about stabilization grants including policy guidance, a timeline, and frequently asked questions. Q: Is it better to pay myself with this grant or spend it on items for my business? 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. How will I know if Im required to participate in the fiscal monitoring process? 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. View Additional Policy Resources on the Office of Child Care site. A CCDF Lead Agency should not consider the economic impact payments (up to $1,200 for qualifying individuals and an additional $500 per child) as income for CCDF eligibility or co-payment calculations. Upon approval of the waiver, the Lead Agency has 60 days from the date of approval to submit any associated amendments for the waiver. No. Absence due to the need to care for a family member or an illness; Any reduction in work, training or education hours, as long as the parent is still working or attending training or education; and. Per federal regulations, providers should spend the funding on one or more of the following categories: What documentation is required to support the monthly grant attestations a provider completes each month? The law specifies that child care providers may use their child care stabilization funds on the following allowable activities: Personnel costs Rent, utilities, facility maintenance or improvements, or insurance Personal protective equipment, cleaning and sanitization, or training and professional development related to health and safety 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. Technical/Business Assistance. 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. Providers are encouraged to consult with an accountant or tax expert to fully understand the tax implications of this funding. What dates matter for the child care stabilization grant? The $3.5 billion in supplemental CCDF CARES Act funding is subject to the same tax rules as regular CCDF funding. If a program closes permanently, will the program need to return the grant funds? Each months report is due by the last day of the month for the previous month. What happens after a program submits an application? This means that funds used to create a licensing department would count toward quality activities or non-direct services rather than administrative purposes. These funds are made available to Arizona through the Child Care and Development Fund (CCDF) relief funding appropriated through The American Rescue Plan (ARP) Act of 2021 (Public Law 117-2). 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. These grants are in addition to other pandemic-related relief funds (e.g., CARES grants, Paycheck Protection Program loans, EIDL loans). No, lead agencies should not calculate current operating expenses after deducting income, including child care subsidy payments. Grant funds are not a loan that need to be paid back. Resources from Home Grown the 2022 tax season is here use it for during... Personal data from your feedback adding plexi-glass barriers to an existing entry way or would... That 50 % of the American Rescue Plan and are designed to support businesses who lost! And employee timecards items for My business c. Reviewing C3 training materials provided by EEC household! Pay yourself has nothing to do with how many hours you work that states match those funds at time. Reduce the eligibility period for essential workers any program revenue guidelines to this! Must be liquidated by September 30, 2023 activities or non-direct services rather administrative! 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