around the country, mostly small businesses, who were already operating on thin margins. The capacity parameters for the Stabilization Grant Program Amount is 30 or less, 31-149, and 150 or more. Persons that require a reasonable modification based on language or disability should submit a request as early as possible to ensure the State has an opportunity to address the modification. Do programs have to complete federal grant reporting to receive C3 funding? Be open and currently serving children at time of application (this does not include temporary closures of 14 days or less). 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. Therefore, while providers may choose to increase pay or offer bonuses for their staff in order to take advantage of these incentives, the provider may not opt-out of continuing to pay their staff at least the same wages. Can child care providers use the C3 grant funds to cover an individuals family subsidy co-payments or tuition? Law 117-2) that President Biden signed on March 11, 2021 and funding applications are now open. If a lead agency chooses to provide stabilization subgrants to child care providers that are not licensed, regulated, or registered and have not previously received child care subsidies but are otherwise eligible to receive CCDF, for example relative providers, lead agencies are encouraged to collect additional details and documentation of operating expenses. About Press Copyright Contact us Creators Advertise Developers Terms Privacy Policy & Safety How YouTube works Test new features Press Copyright Contact us Creators . Even before the public health emergency, child care provider income was unstable and insufficient to cover the costs of providing high-quality care, and the COVID-19 public health emergency has exacerbated this instability. Alternatively, CCDF Lead Agencies also have the option of interpreting the prohibition as applying only during times when schools are open for in-person classes, since there may not be a regular school day during times when schools are closed for in-person classes. OCC encourages child care providers to provide relief from tuition and copayments, if financially possible, especially for low-income families. 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. However, as stated above, efforts to increase access to licensing is considered a supply building activity. Lead agencies may determine how they monitor child care providers receiving ARP Act stabilization funds, including what types of documentation and reporting are required. Minnesota's Child Care Stabilization Grant Program endeavors to provide child care providers with financial support to maintain operations and increase staff compensation. We encourage family child care providers to contact their local SNAP officeVisit disclaimer page for more information. Programs will receive this funding by the end of August 2022. The following applications are available to eligible child care providers to apply for relief funds. No. OCC recommends Lead Agencies to follow guidance established by local and state (or tribal) public health authorities regarding the closure or operation of child care facilities. No. The application must justify that the construction/major renovation activity is for the purpose of preventing, preparing for, and responding to, COVID 19. Set-aside funds can only be used for the following activities: Lead agencies may use the ARP Act supplemental CCDF Discretionary funds to reduce or waive copayments for a subpopulation of families eligible to receive CCDF. The government has taken notice, and their answer is The Child Care Stabilization Grant, part of the American Rescue Plan Act (ARPA). 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. There are only limited circumstances under which the Child Count can change. Eligibility Application Recertification Questionnaire Training Grant Funds (45 CFR 75.2Visit disclaimer page). Yes. For all of the above answers that were No, you can still pay yourself and then use the money for these purposes. Funding for the grants comes from the American Rescue Plan Act. 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)? Wages for child care personnel, pay increases, bonuses, stipends, and benefits are all allowable uses for the grant funds. Yes, additional child care staff or staff time to assist with cleaning and health screening is an allowable use under CCDBG as an activity to improve the quality of child care services and child safety (45 CFR 95.53(a)(10)). Tribal lead agencies that offer stabilization subgrants to child care providers outside of tribally operated centers are required to implement an application process. DCYF Child Care Stabilization Grant As a result of the Federal American Rescue Plan Act, 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 expands access to affordable high-quality care. Lead Agencies may temporarily lower a familys co-payment while the family is experiencing temporary or non-temporary job loss. The federal guidance says you should give parents tuition relief, to the extent possible. This is not a requirement. On the homepage, click on the grant Management tile to open the grants Management system and Dashboard. A Plan amendment should not create any delay since the Lead Agency may proceed with implementing the program change, and subsequently submit the amendment within 60 days. 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. 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. Yes, lead agencies can use funding from the administrative, supply-building, and technical assistance set-aside of up to 10 percent for states and territories and 20 percent for tribes to cover personnel costs associated with administering the stabilization funds, including term-limited staff. The remaining funds may be used for administering the subgrants, providing technical assistance and support for applying for and accessing these subgrants, publicizing the availability of these subgrants, carrying out activities to increase the supply of child care, and providing technical assistance to help child care providers meet certain policies. How do I treat this on my taxes? I plan to discount the current family tuition evenly. 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. 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 . 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. Can this include replacing lost income due to low enrollment? How will I receive the grant awards? 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. You can use it for free during a 30 day trial period. Such an amendment, however, would not modify the Child Count. Furthermore, 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. However, since every situation is unique and states may release additional requirements or restrictions, providers should always consult a tax professional to obtain advice specific to their own unique situation. Self-employed FCC providers should keep separate accounts and records for business and personal finances. The review might include, but is not limited to, requests for: Programs will be notified by EEC if they have been chosen to participate in the fiscal monitoring process. Paycheck Protection. 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. 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. What type of private information should not be submitted during the fiscal monitoring review process? Base amount funds can be used for any approved CCDF activities and are not restricted by spending requirements. 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. Q: I gifted some of the grant back to parents because of COVID. 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. Lead Agencies may also use CCDF quality dollars to provide temporary grants or assistance to impacted providers to retain the child care supply during periods of closures. (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. The application period ended December 14, 2022. Child care providers also may not involuntarily furlough employees employed on the date of submission of the application. Lead Agencies should follow their Continuity of Operations Plans (COOPs). Can the grant funds be used to pay the director/provider? Childcare isnt just a family issue, its a business issue. See FAQ 34 for further discussion about amending CCDF plans to change a tribes definition of Indian child during the pandemic. For example, when each payment is received: What is the Expenditure Tracker tool and how can it be used? Finally, Lead Agencies must inspect child care providers for compliance with fire, health, and safety standards in accordance with 45 CFR 98.42. Allowable categories for the grant include rent, or mortgage payments, utilities, and insurance. . The Child Care Relief Fund Technical Assistance Team can be reached by emailing CCReliefFunds@trelliscompany.org or calling 1-833-613-3192. 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. In almost every situation, a provider will benefit financially from these grants even after taxes. 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. This video identifies the benefits of the child care stabilization grants and the tax consequences of receiving them.We accept comments in the spirit of our . This tracker should not reflect expenditures made with funds other than the Child Care Stabilization Grant monies. Yes, CCDF funds can be used to provide some sanitation supplies to families, provided that the supplies relate to the provision of child care. Tribal lead agencies are encouraged to include center-based and family child care programs, as well as programs that serve school-age children in after-school, summer, and weekend programs. This could include posting a PDF copy or screenshots of the applications. Rather, lead agencies define their policies to meet this requirement and report them as part of the CCDF plan (45 CFR 98.16(t)). A: Each state has its own rules about this. Child Care Stabilization Base Grants will be available to all eligible providers on a monthly basis beginning September 2021. Programs in inactive status are not able to apply or recertify their stabilization grant while they are in inactive status, as only programs that are open to serve children are eligible for stabilization grants. This grant signifies a powerful gesture of government support for families and businesses as the economy recovers. These payments count as a rebate or advance payment of a credit that are exempted as income. If there are multiple Programs registered, Search Provider to quickly locate the Provider. 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. Providers may also require additional screening processes, such as temperature checks and wearing masks, when feasible, during interactions. The Child Care Stabilization Grant is considered income and is taxable. To learn more about how to fill out W-9 information, check out this video to learn how to complete Form W 9. 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. This may include additional eligibility criteria (that apply only at redetermination) or adjusting the graduated phase-out levels to help the lead agency manage the population served and ensure that those most in need are receiving services. Regular email notifications will be sent when payments are released. The ARP Act stabilization funds are designed to support the child care market as a whole by covering business related expenses. Lead agencies have the discretion to decide which child care providers are included in their ARP Act stabilization subgrant programs. Children do not need to be formally involved with child protective services or the child welfare system in order to be considered eligible for CCDF assistance under this category. In addition, the Coronavirus Aid, Relief, and Economic Security Act or the CARES Act (Public Law 116-136) and the 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. The Frequently Asked Questions (FAQs) describes how Lead Agencies can support the stability of the child care sector during and after the COVID-19 public health emergency and measures to prevent, prepare for, and respond to coronavirus. The terms included in the Act are broad, and lead agencies have the flexibility to define them. What is the difference between a major renovation and minor building updates or maintenance? I feel like its just more income I have to claim and pay taxes on. After September 30, 2022, no additional CCSG awards will be made. other COVID-related expenses (including past expenses). The plan includes $24 billion in child care stabilization grant funding for states, territories, and tribes to distribute within their state using the Child Care and Development Grant (CCDBG) formula. 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. Is the child care stabilization grant taxable? Under 45 CFR 98.67(a), Lead Agencies shall expend and account for CCDF funds in accordance with their own laws and procedures for expending and accounting for their own funds. Some child care businesses may qualify for tax credits to support paid sick leave while they receive a vaccine and recovery from any side effects. Start-up & Expansion. . The CCSG Workforce Amount began with the July 2022 grant payment for providers starting the month following application approval. Within the grant attestation, a provider attests to using the funds for only items in the allowable expenditure categories. 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. Programs should spend all funding in accordance with the specific requirements of each grant program. 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. Enter your LEAD username, enter your LEAD password, and click Login. See the funding breakdown by state, tribe and territory, and more information about the grant on the. A: If you dont spend all of the grant money on items used 100% for your business, it will increase your business profit. 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. A: You can deduct your Time-Space% of your utilities. Grant funding amounts and distribution schedule. If a provider is in the financial position to provide relief from copayments and tuition for families, they should provide that relief and prioritize the relief for families with incomes below 85 percent of state median income. 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 Furthermore, in many states, participation in TANF also makes families automatically eligible for SNAP and/or WIC. However, a child care provider that was not licensed, regulated, or registered and met state and local health and safety standards as of March 11, 2021, must meet CCDF requirements at the time of application in order to be eligible for a child care stabilization subgrant. State tax rules apply. General Grant Questions Q1. Q: Will getting this grant put me in a higher tax bracket? Allowable changes to the tribes definition could include children who are tribal members, whose membership is pending, who are eligible for membership, and/or are children/descendants of members. You can use it for free during a 30 day trial period. 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. This presents an administrative challenge for using grant funds, because if you dont do it correctly you may lose your funds. The CCSG application is now closed. 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. HUD regulations specifically exclude temporary, nonrecurring, or sporadic income from the definition of annual income (24 CFR 5.609(c)(9)). Examples of documentation include receipts (electronic or paper), paid invoices, payroll records, and employee timecards. FAQs in this category focus on questions about how to implement subgrant programs and allowable uses for these funds by the provider. Adhering to your states unique spending and reporting requirements for funds that are part of the grant through the Office of Child Care. ACF additionally recommends seeking funding outside of CCDF to increase testing capabilities for the broader community. 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. This webinar, presented by child care business expert, Tom Copeland, will cover all the new tax changes affecting family child care providers for 2021.These include the Child Care Stabilization Grants, SBA forgivable loans, new child tax credit, what's deductible in the era of COVID, calculating your Time-Space% if you have been closed, and more. Child care providers that receive a grant have a reporting obligation on Form 1099-G if the amount is above $600. Yes, essential workers are subject to the eligibility requirement that family assets do not exceed $1 million. However, the ARP Act stabilization funds are meant to support the child care sector during and after the COVID-19 public health emergency. 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). 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. An official website of the Commonwealth of Massachusetts, This page, Child Care Stabilization Grants FAQs, is, Professional development and other investments to support staff in building educator qualifications. The American Rescue Plan Act of 2021 (ARP Act) (Pub. 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Trelliscompany.Org or calling 1-833-613-3192 can use it for free during a 30 day trial period, especially for families. To learn how to complete Form W 9 the following applications are now open as stated above efforts. 2022 grant payment for providers starting the month following application approval emailing child care stabilization grant taxable @ trelliscompany.org calling. Providers also may not involuntarily furlough employees employed on the grant on grant... Masks, when feasible, during interactions PDF copy or screenshots of the grant attestation, provider! On March 11, 2021 and funding applications are available to all providers...
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