Furthermore, for family child care providers, whether the child care stabilization funding counts as income also depends on whether it is used as income by the family child care provider who receives it. 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. Child Care Stabilization Grants The American Rescue Plan Act of 2021 (ARP Act) (Pub. Yes, Lead Agencies can provide hazard pay to providers that remain open during COVID-19. Stipulations for what the funds can be spent on and how to properly report them. Grant funds are not a loan that need to be paid back. Ive created an instructional video that answers these questions and many more. How is a programs licensed capacity determined? Programs that are awarded a grant will receive an IRS Tax Form 1099-NEC. Tribes, on the other hand, are permitted to use CCDF funds for construction and major renovation to prevent, prepare for, and respond to, COVID-19. Tribal lead agencies may choose to award all of the ARP Act stabilization subgrants to their tribally operated centers. 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). In other words, there is nothing in the CARES Act that specifically exempts CCDF CARES Act funding from taxation. If you did give parents a discount, the amount you gave as a discount is not a business expense. Previous updates can be found on the ARPA Stabilization Grants page on the Pennsylvania Key website. Goods and services necessary to maintain or resume child care services. Step 1: Submit an OK Child Care Application Step 2: OKDHS reviews the application Step 3: OKDHS approves the application Step 4: Child care program is notified of approval via email Step 5: Payment will be delivered after the application period ends and your application has been approved. 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. Annual Training Costs. 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. Q: If I have staff can I still pay myself the whole amount? Tribal lead agencies may request technical assistance to expand services to existing child care providers that have not previously been involved in the tribal CCDF program by contacting the OCC regional program office. It affects how we all work, when we can work and for many, why we work. However, the ARP Act stabilization funds are meant to support the child care sector during and after the COVID-19 public health emergency. Child Care Relief Funds. Regarding federal tax rules, please contact your tax preparer or the Internal Revenue Service for guidance. Therefore, the lead agency cannot require child care providers receiving stabilization funds to use the funds to cover the cost of reduced family payments. In order to change their definition of an Indian child, a Tribe would need to submit a CCDF Plan amendment (see Program Instruction CCDF -ACF-PI-2019-03 for more information about submitting CCDF Plan amendments). Lead Agencies who receive ACF grants may not use grant funds for costs that are reimbursed or compensated by other federal programs. 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. 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. And while many child care providers have opened back up, its been anything but easy. Apply for a waiver to use CCDF funds to provide direct services to families who do not meet CCDF eligibility requirements (e.g., with income above 85% of State Median Income; see note above regarding additional flexibility regarding use of the CARES Act and CRRSA Act CCDF program funds) and/or providers who do not meet CCDF health and safety requirements. To ease service delivery to these children, Lead Agencies may choose to classify them as in need of protective services for purposes of child care subsidy eligibility. Ensuring parents have access to their children while they are attending child care is a longstanding CCDF requirement that supports program quality and transparency, as well as parent and family engagement. Welcome to the Child Care Strong grants, administered by MDHS's Division of Early Childhood Care Department. As required at 45 CFR 98.60(d)(4)(ii),Visit disclaimer page if the lead agency does not have an applicable requirement, the regulation at 45 CFR 75.2Visit disclaimer page, Expenditures and Obligations, applies. Can I give him a $500 bonus? For example, CCDF funds could be used to give packages of gloves and masks to families with the understanding that these materials will be used when parents drop off and pick up children from child care. In order to be a qualified child care provider and eligible to receive a subgrant, a child care provider must either 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 at the time of application. Regarding federal tax rules, please contact the Internal Revenue Service for guidance. The definition of what counts as income for the EITC is determined at the federal level and includes all income reported to the IRS as part of a tax filers Adjusted Gross Income (AGI). The BIG Program was specifically designed to support businesses who endured lost revenue due to the COVID-19 public health emergency. 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. 9858k(b), and 45 CFR 98.56(c) of the CCDF regulations prohibit spending CCDF for any service provided to students enrolled in grades 1 through 12 during the regular school day. Agreements with intermediaries should include a requirement 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. 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. Family child care providers must report any portion of the stabilization grant that they use to pay themselves as taxable income on their federal and state income tax return (unless their state chooses to make the grant not taxable). If the family is still eligible at redetermination, they should receive another minimum 12-month eligibility period and should not be placed on a waitlist. Q: If I was audited, would they just audit my grant or my entire business? 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. To access your existing Child Care Stabilization Grant application, please go to childcare-grants.ocfs.ny.gov. Third, Lead Agencies should review their own laws and procedures for expending and accounting for their own funds, and, where possible, proceed with the liquidation of existing obligations. During the current public health emergency, these essential workers cannot work from home, and many of the regular child care arrangements for their children have closed. Programs should spend all funding in accordance with the specific requirements of each grant program. 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. The Department of Children and Families (DCF) has allocated $351 million in funds for the Child Care Counts: Stabilization Payment Program to support Wisconsin's early care and education community. The Stabilization Payment Program Round 2 is a nine-month payment program that runs . KidKare is a comprehensive record keeping program that includes an accounting section that allows you to keep track of all your income and expenses. Q: Can I use the Stabilization grant for: Pay my employees life insurance premiums? When receiving multiple streams of funding from EEC and other agencies, it is recommended that child care programs: How can a sole proprietor of an FCC account for and document payments to themselves? It is a tool to assist child care providers in tracking expenditures made with C3 grant funds. Yes. 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)? 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. Please let us know how we can improve this page. The goal of the child care stabilization grants is to provide financial relief to child care providers to help defray unexpected business costs associated with the pandemic, and to help stabilize their operations so that they may continue to provide care. Q: What if I paid myself with this grant and then later realize that I can use it for items used 100% for my business. Therefore, this funding is subject to the same tax rules as regular CCDF funding. These essential functions include (i) continuing payments to child care providers serving children receiving subsidies; (ii) provisions for extending eligibility re-determination for families; (iii) communication with the licensing agency to ensure that licensed programs receiving CCDF funds are safe and operational; (iv) assisting new enrollees or preparing for an influx of families who may need assistance; (v) implementation of a waiting list if the Lead Agency does not have one, as appropriate; and (vi) tracking families receiving subsidies impacted by the disaster. For example, when each payment is received: What is the Expenditure Tracker tool and how can it be used? Yes. For example, a Lead Agency could increase income eligibility up to 85% of State Median Income; many Lead Agencies currently have lower thresholds. Tutoring or academic support services that are stand-alone services or delivered outside of child care settings/services are not an allowable use of CCDF. Base amount funds can be used for any approved CCDF activities and are not restricted by spending requirements. State and territory lead agencies provided information on their implementation of stabilization grant funding plans in their FY 2022-2024 Child Care and Development Fund (CCDF) Plan, Q 4.1.8e due July 1, 2021. 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). Lead Agencies should follow their Continuity of Operations Plans (COOPs). Please note that any changes to a states definition of income to take advantage of this flexibility must be reflected in a CCDF plan amendment. Federal Pandemic Unemployment Compensation, which provides an additional $300 per week to individuals who are collecting regular state or Federal UC, through weeks of unemployment ending on or before March 14, 2021. As we all know, parents need access to safe, quality child care to get back to work. About On April 9, 2021, the Delaware Department of Health and Social Services and the Delaware Department of Education announced that the Delaware Early Education and Child Care Stabilization Fund will provide $66,752,816 in direct grants to support eligible early child care professionals across Delaware. No. Lead agencies have wide discretion in how subgrant amounts are formulated, including how current operating expenses are calculated. Section 658P(4) of the Act indicates that, for purposes of eligibility for CCDF subsidies, an eligible child includes a child who is receiving, or needs to receive, protective services (in addition to children of parents who are working or attending training/education). These subgrants are designed to stabilize existing child care businesses, not fund the start-up or reopening of a provider not open for business. 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. 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. ARP stabilization funds used for tribal construction or major renovation must be liquidated by September 30, 2023; there is no separate obligation deadline for funds used for construction or major renovation. 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? Yes, the CCDF, CARES Act, and CRRSA Act program funds may be spent on COVID-19 testing kits. Providers who received an initial disbursement will receive email notifications via NJCCIS when they are eligible to recertify, this process will begin in December 2022. State tax rules apply. In order to be a qualified child care provider and eligible to receive a subgrant, a child care provider must either 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 at the time of application. This bill, based on President Biden's bold American Rescue Plan, provides $39 billion in desperately needed child care relief funding. The CCSG application is now closed. 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. How should a program manage/account for having multiple streams of funding from EEC and other state agencies? EEC will notify programs in advance if a review at the program location will occur and whether the review will be conducted on-site or remotely. Child care programs may apply for only one of three grant opportunities. She may keep the funds in the bank account as an emergency fund for later use or she can spend it as she wishes. Almost. One example is the Rural Tribal COVID-19 Response (RTCR) program established by the Health Resources and Services Administration (HRSA) with CARES Act funds which allows rural tribes to increase their capacity to test suspected COVID-19 patients within their communities. See how Compt can help you and your employees utilize these federal funds: Schedule a Demo: Our customers have figured out how: lifestyle spending accounts! However, as stated above, efforts to increase access to licensing is considered a supply building activity. Information and resources to help CCDF Lead Agencies and providers understand, administer, and access child care stabilization grants. Q: How do I find out where to apply for this grant? Pursuant to Title VI of the Civil Rights Act of 1964, the Americans with Disabilities Act (ADA) and other nondiscrimination laws and authorities, ADES does not discriminate on the basis of race, color, national origin, sex, age, or disability. Second, if the Lead Agency is unable to re-purpose the funds or does not have policies to allow for this, the Lead Agency can request a waiver of the FY2018 liquidation period due to the COVID-19 for a specified period of time in accordance with 45 CFR 98.19, requests for temporary relief from requirements. Programs that permanently close are expected to notify EEC prior to their date of closure. Deducting income before calculating a providers current operating expense as part of determining a subgrant award amount undermines the purpose of the ARP Act stabilization subgrants. Child care providers also may not involuntarily furlough employees employed on the date of submission of the application. No, tribes that are not already part of a consortium cannot pool their ARP Act stabilization funds to administer a single subgrant program. 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. However, families who receive TANF cash assistance may be categorically eligible for SNAP. 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. This tracker should not reflect expenditures made with funds other than the Child Care Stabilization Grant monies. Wages for child care personnel, pay increases, bonuses, stipends, and benefits are all allowable uses for the grant funds. 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. Afterwards it costs $99.00 a year. 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. You can use it for free during a 30 day trial period. This enhanced FMAP rate has the effect of decreasing the amount that states will be required to spend to claim their full CCDF match allotment. However, Lead Agencies may apply for temporary waivers for extraordinary circumstances in response to emergency situations in accordance with 45 CFR 98.19. Technical/Business Assistance. Programs that are awarded a grant will receive an IRS Tax Form 1099-NEC. 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. The C3 grant funds may be used for wages and benefits for child care program personnel, including compensation for any staff supporting a child care center or family child care providers and their employees. No, ARP Act stabilization subgrants cannot be used to assist in the purchase of a child care program. Lead agencies may also consider how they can pair more flexible funding provided by the CARES Act and CRRSA Act with the more prescriptive ARP Act stabilization funds. Q: Can I use this grant to pay myself? Costs claimed toward the grant must align with your business expenses reported in your federal taxes. The ARP ActVisit disclaimer page requires providers to certify that they 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 (emphasis added). 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. If youre a daycare or child care provider, read on to find all of the important program details. A: State applications will often use the word personnel when describing what the grant can be used for. A provider does not have to be serving a child eligible for CCDF in order to be considered as meeting CCDF requirements. See FAQ 34 for further discussion about amending CCDF plans to change a tribes definition of Indian child during the pandemic. For most Medicaid beneficiaries, the definition of what counts as income for Medicaid is determined at the federal level and includes all income reported to the IRS as part of a tax filers Adjusted Gross Income (AGI), plus some non-taxable income sources. Change a tribes definition of Indian child during the pandemic & # ;... The amount you gave as a discount is not a loan that need to be serving child. When we can improve this page a provider does not have to be as. When describing what the funds in your business expenses reported in your federal taxes,. Or my entire business funds can be used to assist in the CARES Act and. A child eligible for CCDF in order to be serving a child care Stabilization grant application please! 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child care stabilization grant taxable