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. 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. 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. Lead Agencies should consider whether there are other sources of fundingsuch as public education dollarsto pay for equipment being used by children and families in the home. Annual Training Costs. 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. However, child care providers are not required to provide relief from copayments and tuition for families in their care during the ARP Act stabilization subgrant period. The required W-9 information is included in the application, so providers do not need to download or upload a separate form. How should a program manage/account for having multiple streams of funding from EEC and other state agencies? Child care programs who have received C3 funding are not considered a direct subrecipient of grant funds and, therefore, are not subject to federal reporting. The Ohio Department of Job and Family Services (ODJFS), Office of Family Assistance, was approved through the State of Ohio Controlling Board and Legislative Appropriation to spend these federal stabilization relief funds. Additional information is available at: https://www.irs.gov/coronavirus/employer-tax-credits. 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. Retaining documentation to support each expenditure (i.e. Stabilization Grant Q: Is the Stabilization grant taxable income? This means that funds used to create a licensing department would count toward quality activities or non-direct services rather than administrative purposes. OCC has not released specific guidance that addresses all possible scenarios related to categorizing regular educational services for school-aged children that would not be eligible for CCDF subsidies. Any funds received after the date of permanent closure will need to be returned to EEC. If the lead agency does not require school-age child care providers to complete safe sleep practices training to be eligible to serve children receiving CCDF subsidies, then school-age providers are not required to complete a safe sleep practices training in order to be eligible for ARP Act stabilization assistance. Snow removal snow or other weather-related services, Installing new interior, carpeting, or flooring, Replacing outdated building fixtures and general repairs, Direct deposit or electronic funds transfer, Document the amount(s) of funds received from each source separately, Review the terms of each grant program to clearly understand the allowable (and nonallowable) uses for each award. Help is on the way! Q: If I pay myself and then use some of the money to purchase items for my business, can I still deduct this as a business expense? FMAP rates and state matching requirements are published on the GY 2020 state and territory CCDF allocation tables page. 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]. 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. Once an application is reviewed and approved, an email notification of the approval will be sent to the applicant. You may request assistance from a member of our grants team by filling out the inquiry form below: To contact a member of our grants team, please email grants@ks.childcareaware.org. You will owe 15.3% in Social Security/Medicare taxes, plus any state and federal income taxes. 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. When posting information, OCC recommends including details on how interested child care providers can contact the lead agency for more information on accessing and submitting an application. 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. The law specifies that child care providers may use their child care stabilization funds on the following allowable activities: ARP Act stabilization funds cannot be used to cover family copayments or tuition. 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. Contact your state for the answer. A lock icon ( You can use it for free during a 30 day trial period. 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. Therefore, providers participating in their ARP Act stabilization subgrant programs may terminate an employee for cause during the subgrant period. Extensive alteration of a facility such as to significantly change its function and purpose, even if such renovation does not include structural change. 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. Broaden the Lead Agencys definition of protective services to permit emergency eligibility as a temporary, short-term measure. 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.. 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. 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. 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. OCC will not consider construction or major renovation applications for facilities that do not provide direct child care services to children. Based on currently available funding, EEC anticipates funding will be available to provide grants from July 2022 through December 2022. The Child Care Stabilization Grant is the sole focus of these fiscal monitoring reviews. Care provided in emergency situations should be of the highest quality that is reasonably practicable given the particular circumstances. It affects how we all work, when we can work and for many, why we work. No, lead agencies cannot use their ARP Act stabilization set-aside funds to cover family copayments or tuition. See the funding breakdown by state, tribe and territory, and more information about the grant on the. Q: If I transferred money to pay myself earlier but sometimes forgot to make a note, can I go back and fix it? Yes, tribal lead agencies may use the entirety of their ARP Act stabilization funds on construction and major renovation. Supplemental Funds Congress awarded additional (or supplemental) funds to the CCDF program through several COVID-19 relief packages (i.e., the CARES Act, the CRRSA Act, and the ARP Act). This builds on critical down payments on relief . 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. Providers will not be penalized for temporary closures that occur during the grant period, provided they are open and serving children for at least part of that month. 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. 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. Will the Child Care Stabilization Grant funding be considered income when I file my 2021 taxes? The definition of what counts as income for WIC is determined at the federal level, and payments from child care stabilization funding would generally count as income. You will probably owe no more than 40% of the grant in taxes. Funded by supplemental Child Care Development Block Grant funds through the American Rescue Plan Act (ARPA), this opportunity is intended to help stabilize the cost of maintaining child care programs by supporting the child care workforce, reducing the financial burden of child care for families and ensuring a safe and healthy environment. All Rights Reserved. This still leaves $2,100 for the provider to spend as she chooses (or save it). Also, tribal lead agencies may be accountable for reporting to OCC on data elements that would have been included in the application. And while many child care providers have opened back up, its been anything but easy. Because Family Child Care (FCC) providers capacity changes with enrollment, all FCC sites will be calculated using a capacity of 10 slots, regardless of the actual capacity, for the purposes of the formula. 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. Child care providers that are receiving stabilization subgrants from a tribal lead agency must be serving at least one Indian child but are not restricted from receiving stabilization subgrants from a tribal lead agency if they also serve non-Indian children or have received a stabilization subgrant from a state. All CCSG providers approved for the award between July 2021 and September 30, 2022 will be paid monthly through June 2023. 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. (45 CFR 75.2Visit disclaimer page). Yes, Lead Agencies may enroll new providers to meet increased demand. The ARP ActVisit disclaimer page at section 2202(e)(1) specifies that subgrant funds can only be used for the following operating expenses: No, ARP Act stabilization subgrants cannot be used to help a new child care provider open or a permanently closed child care provider reopen. Here is a link to the US Department of Labors webpage on UC benefits related to the COVID-19 outbreakVisit disclaimer page. Therefore, there must be a connection to non-parental child care in order to use CCDF funds. 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. Are available COVID-19 testing capacities meeting the needs of the community or would increasing testing in child care draw limited testing capacity away from populations with greater risk and exposure (e.g., health care workers and nursing home residents and workers)? 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. 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. OCC reminds tribal lead agencies that the ARP Act requires stabilization funds be used to supplement not supplant tribal funds expended for child care services for eligible individuals, including when stabilization funds are used for tribally operated centers. A: State applications will often use the word personnel when describing what the grant can be used for. 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. Additional information for tribes that operate their CCDF program under a consolidated 102-477 plan is available here. Tribal lead agencies may set-aside up to 20 percent of their ARP Act stabilization funds for administration, supply building, and technical assistance. What is the New Child Care Stabilization Grant? Child Care Stabilization Grant OCCRRA is excited about the opportunity to support Ohio's Child Care Stabilization Sub-Grants. Yes, the CCDF, CARES Act, and CRRSA Act program funds may be spent on COVID-19 testing kits. Lead Agencies may submit a waiver to ACF to reduce the eligibility period for essential workers. If youre a daycare or child care provider, read on to find all of the important program details. In emergency situations, Lead Agencies have the option of deeming certain impacted childrensuch as children of health care, emergency, or other essential workers-- to be in need of protective services and therefore, the regular CCDF eligibility requirements (e.g., income threshold) need not apply. Program highlights follow below. The CCSG application is now closed. Regular CCDF funds or COVID relief funds (CARES Act, CRRSA ActVisit disclaimer page, and ARP Act supplemental) have a limit of 15 percent of funds that can be used for administrative purposes. Below are the steps you will need to take to obtain a listing of your paid amounts. During the fiscal monitoring review process, will other sources of funding be reviewed outside of the C3 Child Care Stabilization Grant (such as a PPE loan)? Lead Agencies may serve families for a longer period with CARES Act funds. After an application is submitted, a confirmation email will be sent to the email address listed in the programs LEAD account profile. OCC suggests the lead agency document the use of funds, including a written demonstration that the use of funds for incentives is directly connected to a CCDF authorized activity, and that the costs are reasonable and "ordinary and necessary" to accomplish CCDF objectives. ACF additionally recommends seeking funding outside of CCDF to increase testing capabilities for the broader community. These funds represent an unprecedented opportunity that will be difficult to realize without adequate staffing. CCDF funds, including supplemental funds, cannot be used to cover tuition or copayments for families that are not eligible to receive CCDF child care subsidies. Lead agencies should contact their OCC Regional Offices for support and technical assistance related to spending the various funding streams so they can reach child care providers and families quickly. 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). CARES Act funds (including those used for construction and major renovation) must be liquidated by September 30, 2023. Are there other local resources or options for testing? And while many child care providers have opened back up, its been anything but easy. Well answer: One of the most common questions about this federal relief program is how much is the grant? 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. After September 30, 2022, no additional CCSG awards will be made. Refer to the disbursement schedule linked within the grant dashboard in the LEAD portal. Help is on the way! The Child Care and Development Block Grant (CCDBG) Act requires lead agencies to allow for provision of continued assistance for families whose income exceeds the initial eligibility threshold but is below the second tier. 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. Supporting Centers in Preparing for Child Care Stabilization Grants Applications need only request the minimum information necessary to make the subgrants and meet the federal reporting requirements. We encourage Lead Agencies to take steps to assure that the hazard pay reaches staff actually providing care for those providers. This only applies to Tribal CCDF Plans and not to tribes with approved Public Law 102-477 Plans. 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 Stabilization Grant Questions and Answers. Other funds are not within the scope of this review. KidKare is a comprehensive record keeping program that includes an accounting section that allows you to keep track of all your income and expenses. A: Assuming the money you spend on items for your business are used exclusively for your business, the tax consequences are the same as paying yourself. Lead agencies should balance the need to collect information necessary to ensure funds are being spent correctly and not overly burdening providers. 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 Programs that close temporarily during the 12-month grant period due to inactive status (including inactive status pending an investigation) will have their payment frozen as of the date that the program became inactive in LEAD. 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. Please do not include personal or contact information. Yes, the ARP Act requires the lead agency to make available on the lead agencys website an application for qualified providers that includes certifications the child provider, for the duration of the subgrant, will implement certain health and safety requirements and guidance, pay full compensation to staff, and, to the extent possible, provide relief from copayments and tuition for families in their care (section 2202(d)(2)(D)(i)Visit disclaimer page).
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