Lead Agencies have the option to continue serving the child until the next eligibility redetermination, and may establish eligibility periods longer than 12 months. Important note: Although there is federal guidance on how the Stabilization grants are to be administered, each state may interpret this guidance slightly differently. View a submitted Stabilization 1.0 or 2.0 grant application by clicking the button below: View a Submitted Application Stabilization Help Line: 844-863-9319 The facility to be constructed must be used principally to provide direct child care services to children. A: If your state audits how you spent the grant, it is not likely they will audit the rest of your business. Lead Agencies unable to meet federal statutory or regulatory CCDF requirements due to COVID-19 impacts may apply for a temporary waiver due to extraordinary circumstances in accordance with 45 CFR 98.19. Pandemic Unemployment Assistance, which provides benefits for up to 50 weeks to individuals who are not eligible for regular UC or extended benefits and who have been COVID-impacted with regard to their unemployment (minus any weeks of regular UC and Extended Benefits (EB) the individual received); Pandemic Emergency Unemployment Compensation, which provides an additional 11 weeks of benefits, through March 14, 2021, to individuals who have exhausted their rights to regular state or Federal UC benefits; and. . Upon approval of a waiver request, Lead Agencies have 60 days to submit a CCDF Plan amendment to correspond with the provision(s) in the waiver request. Once an application is reviewed and approved, an email notification of the approval will be sent to the applicant. The lead agency may also choose to use funds provided by the Coronavirus Response and Relief Supplemental Appropriations (CRRSA) ActVisit disclaimer page to cover copayments for all eligible families. You will owe 15.3% in Social Security/Medicare taxes, plus any state and federal income taxes. There has never been this amount of federal funding dedicated to childcare providers, which makes this an incredible opportunity. A: You arent paying yourself for any particular hours you work. OCC encourages tribes to coordinate with states and tribes regarding tribally affiliated children who do not live in the tribal lead agencys service area. 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. Furthermore, in many states, participation in TANF also makes families automatically eligible for SNAP and/or WIC. OCC reminds tribal lead agencies that CCDF funds, including stabilization subgrants, are restricted to serving children who are under age 13, or at the tribal lead agencys option, children under age 19 and are physically or mentally incapable of caring for himself or herself, or under court supervision as defined inthe tribal CCDF Plan. This may include programs that braid or layer CCDF and other child care funds with Head Start or the Head Start program is the only available early care and education program in a community. Effective July 2022, the CCSG Workforce Amount is awarded to recipients of the CCSG who certify they will use the amount for personnel costs including payroll/wage supplements, bonuses, and employee benefits. In addition, the Coronavirus Aid, Relief, and Economic Security (CARES) Act (Public Law 116-136) and Coronavirus Response and Relief Supplemental Appropriations (CRRSA) Act of 2021 (Public Law 116-260) provided a combined $13.5 billion in supplemental CCDF program 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. A: No, because paying yourself does not create a deduction. 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. The provider will provide relief from copayments and tuition payments for the families enrolled in the providers program, to the extent possible, and prioritize such relief for families struggling to make either type of payment. Yes, the CCDF, CARES Act, and CRRSA Act program funds may be spent on COVID-19 testing kits. In addition, many of these individuals are working extended or irregular hours, and under stressful circumstances. Some examples include: What are the requirements and restrictions for how the grant funds can be used for payroll? This could include posting a PDF copy or screenshots of the applications. Lead Agencies have the flexibility to define full-time and part-time rates. This program doesnt just impact parents and childcare providers either. Law 117-2), signed on March 11, 2021, includes $23.97 billion for child care stabilization grants to be allocated to states, territories, and Tribes based on the current Child Care and Development Block Grant (CCDBG) formula. No. The goal of the Child Care Stabilization Grant is to provide financial relief to child care providers to help cover unexpected business costs associated with the COVID-19 pandemic, and to help stabilize their operations so they may continue to provide care. There are only limited circumstances under which the Child Count can change. This applies to regular CCDF, CARES, CRRSA, and the ARP Act supplemental discretionary funds. Q: How do I create an emergency fund with this grant? 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. As the incentives in question would be to promote vaccination among child care providers and support health and safety in child care programs, this would be an allowable use of CCDF quality funds. Once a family begins receiving CCDF, their subsidy can only be terminated at redetermination through the graduated phase-out policy, if the reason for termination is income eligibility. These funds are designed to support the child care market as a whole by covering business related expenses. While we support Lead Agencies attempts to stabilize child care supply and funding during the public health emergency, under existing law and rules, it is not allowable for a Lead Agency to use regular CCDF funds to double-pay subsidies to two different providers for the same child for the same time of service. Where to find more information This could also include adopted children, foster children, and step-children, etc. Top-requested sites to log in to services provided by the state. 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). As a reminder, child care providers must confirm the data used and the estimated current operating costs as part of their applications. 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. OCC will review construction and major renovation applications to make sure that the use of ARP Act stabilization funds for construction or major renovation will not result in a decrease in the level of child care services provided in the service area. Lead agencies may choose to contract with intermediaries, such as counties, child care resource and referral agencies, and staffed family child care networks, to manage the administration of the ARP Act stabilization subgrants. Lead Agencies should ensure that payment practices for each type of provider reflect generally accepted payment practices in order to ensure that families have access to a range of child care options. Programs should spend all funding in accordance with the specific requirements of each grant program. Because efforts to increase access to licensing are considered a supply building activity, funds from this set-aside could be used to create a child care licensing department for the tribe. 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. Purchases of or updates to equipment and supplies to respond to the COVID-19 public health emergency. The Child Care Stabilization Grant (CCSG) Program sustains Arizonas 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. Therefore, this funding is subject to the same tax rules as regular CCDF funding. Example 1: Provider pays herself the full amount. 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. A: You can pay yourself as often and as much as you want. Information and resources to help CCDF Lead Agencies and providers understand, administer, and access child care stabilization grants. If you do sign up, please use the referral code 0659. We encourage family child care providers to contact a tax advisor about what should and should not be reported as part of ones AGI. However, the ARP Act stabilization funds are meant to support the child care sector during and after the COVID-19 public health emergency. Q: Can I use the Stabilization grant for: Pay my employees life insurance premiums? Allowable categories for the grant include rent, or mortgage payments, utilities, and insurance. Federal law defines income for SNAP. 17. Lead Agencies may serve families for a longer period with CARES Act funds. Child care providers may use subgrants to cover a range of expenses such as personnel costs; rent or mortgage payments; insurance; facility maintenance and improvements; personal protective equipment (PPE) and COVID-related supplies; training and professional development related to health and safety practices; goods and services needed to resume providing care; mental health supports for children and early educators; and reimbursement of costs associated with the current public health emergency. After September 30, 2022, no additional CCSG awards will be made. Maryland State Department of Education (MSDE) Announces Second Round of Child Care Stabilization Grant Applications December 28, 2021 FOR IMMEDIATE RELEASE: MEDIA CONTACT: Lora Rakowski, lora.rakowski@maryland.gov 410-767-0486 PROGRAM CONTACT: childcaregrants.msde@maryland.gov For providers that implement this policy, CDC recommends limiting direct contact between parents and staff. It is a tool to assist child care providers in tracking expenditures made with C3 grant funds. However, there may be some situations where child care stabilization funding should not be reported as income by a family child care provider (e.g., if the funding were used to cover rent, and if that did not affect a recipients net income). The allowable uses of subgrant funds are the same for tribal child care providers as for state and territory providers, except that tribal lead agencies may use any of the stabilization funds for construction or major renovations. You can use it for free during a 30 day trial period. 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. Any funds received after the date of permanent closure will need to be returned to EEC. Yes, tribal culture or language preservation camps can receive stabilization subgrants. 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. Yes, Child Care Stabilization Grant funds are considered income by the IRS. The request must also provide sufficient detail on the provision(s) from which the Lead Agency is seeking temporary relief and how relief from the sanction or provision, by itself, will improve the delivery of child care services for children and families. By using our website you consent to the use of cookies, two-thirds of childcare centers are serving less than 75 children and are struggling to break even, American Rescue Plan Act (ARPA) Child Care Stabilization Grant requirements by state. 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. 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. For tax purposes, she should reserve a portion of the grant amount to go toward her taxes. Tribes Tribal Lead Agencies have additional flexibilities to meet the unique needs of the populations they serve. 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. Q: How do I find out where to apply for this grant? 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. Forthcoming guidance will comprehensively address use of the CCDBG Supplemental funds in the American Rescue Plan Act. A: You can include it either on line one (Gross receipts) or line six (Other Income). Q: On my grant report I listed mortgage and utilities as expenses. 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. A: Yes. Broaden/loosen any State-, Territory-, or Tribal-specific eligibility requirements for CCDF subsidies up to the Federal maximum allowed. Frequently Asked Questions related to the Child Care Stabilization Grants from the Department of Early Education & Care (EEC). However, tribal lead agencies who do not currently operate under a consortium may coordinate a common framework such that each tribal lead agency establishes the same requirements and procedures for the stabilization grants. 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. Alternatively, a Lead Agency may seek a waiver due to extraordinary circumstances that would allow double subsidy payments to two providers for the same child and period of service. Frequently Asked Questions will be updated on this page. Child care programs may not decrease an hourly employees pay rate but are allowed to decrease the employees hours in a given week. We encourage family child care providers to contact their local SNAP officeVisit disclaimer page for more information. Refer to the disbursement schedule linked within the grant dashboard in the LEAD portal. Tribal lead agencies must submit amendments to their current FY 2020-2022 CCDF Plan within 60 days of the effective date of implementation. 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. Rather, lead agencies define their policies to meet this requirement and report them as part of the CCDF plan (45 CFR 98.16(t)). It would be reasonable, for instance, for Lead Agencies to prioritize services for, or even restrict eligibility to, families with children who are unable to attend school in person because of closures or health reasons over families with children who are able to attend school in person, but opt not to. Other funds are not within the scope of this review. Carefully tracking payments is an important and helpful way to help minimize compliance risks. Therefore, the lead agency may use the size of the child care program as part of their formula for estimating current operating expenses. Self-employed FCC providers should keep separate accounts and records for business and personal finances. For most providers, this would be about 30-40% in taxes. 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. Therefore, you would need to file 1099-Gs to avoid penalties for failure to file (Internal Revenue Code Section 6721) or failure to furnish (6722). While these funds may not be used for direct services, they can be used to cover some of the costs associated with providing and expanding direct services, such as start-up grants and administrative costs associated with using grants or contracts for direct services. Grant navigators are available to assist child care providers with grant applications and other resources. The CCSG application is now closed. Q: Is it better to pay myself with this grant or spend it on items for my business? This still leaves $2,100 for the provider to spend as she chooses (or save it). 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. Therefore, my answers below may not be the same answers your state gives you. OCC is not imposing a specific timeframe for when a temporarily closed provider due to COVID-19 at the time of application must reopen. Dental crown not covered by insurance? Child Care Stabilization Grant OCCRRA is excited about the opportunity to support Ohio's Child Care Stabilization Sub-Grants. 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. Such temporary changes would not impact the amount of care the child would receive. The Families First Coronavirus Response Act (Families First; P.L. 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. As a result, the children of these workers are vulnerable during this time. 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. Funds will be available to child care providers in the form of: Lead Agencies should amend their CCDF Plan with respect to such changes. 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. Yes, CCDF lead agencies may reprogram regular CCDF, CARES, or CRRSA funds until the obligation deadlines, which is September 30, 2022, for CARES and CRRSA. 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 answer is yes, these funds are taxable. 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. 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. You can pay yourself and then give him a bonus. Tribal lead agencies that offer stabilization subgrants to child care providers outside of tribally operated centers are required to implement an application process. No, a budget is not required as part of the application. 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. 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