Reprograming funds for other allowable activities does not constitute a cut in funding for child care for eligible individuals and is not considered supplantation. Can the grant funds be used to pay the director/provider? As such, the loss of TANF could trigger an automatic loss of SNAP and/or WIC for child care workers. 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. 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. Lead agencies have flexibility in determining how to best meet the goal of prioritizing certain children while complying with the eligibility requirements. 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 two-year grant period is scheduled to end in September 2023, meaning eligible employees may receive . 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. Lead agencies that want to exempt essential workers from the family asset test must request and have an approved waiver from ACF. When considering the size of a child care program, lead agencies should use enrollment and/or licensed capacity rather than attendance. 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. 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. Q: If I have staff can I still pay myself the whole amount? Yes, Lead Agencies may pay child care staff based on a childs enrollment rather than attendance. Not all applications are guaranteed to be approved. As part of their ARP Act stabilization subgrant application, child care providers must certify they will pay at least the same amount in weekly wages and maintain the same benefits for each employee throughout the duration of the subgrant. around the country, mostly small businesses, who were already operating on thin margins. 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. This enables Lead Agencies to have the flexibility to define in their CCDF Plan the criteria that the Lead Agency believes would best serve subsidy families, such as families affected by COVID-19 circumstances. Amend CCDF Program Requirements, through a Plan Amendment if Necessary: If the Lead Agency needs to revise some program policies, but would still be in compliance with federal requirements, they can do so without a waiver (e.g., expanding definition of protective services to accommodate impacted families; waiving copays for a portion of the caseload, etc.). 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. Almost. . Each months report is due by the last day of the month for the previous month. 2023 BUILD Initiative. First, Lead Agencies can consider re-purposing other obligations in FY2018 or FY2019. While lead agencies should be aware of obligation and liquidation requirements for the other COVID-19 related funding (i.e., under the CARES Act and CRRSA Act), lead agencies are strongly encouraged to obligate their ARP Act stabilization grant funds quickly to ensure they reach providers in need and protect the existing child care market. Welcome to the Child Care Stabilization Grant Application System! Funding for the grants comes from the American Rescue Plan Act. The child cannot receive academic credit towards graduation solely for participating in the tutoring or academic support itself, pursuant to 42 USC 9858k(b)(2) and 45 CFR 98.56(c)(2). Broaden the Lead Agencys definition of protective services to permit emergency eligibility as a temporary, short-term measure. Published on Monday, March 22, 2021. 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 CCDF regulation at 45 CFR 98.20(a)(3)(ii) clarifies that the protective services category may include specific populations of vulnerable children as identified by the Lead Agency. If approved, these waivers may temporarily exempt Lead Agencies from meeting health and background checks requirements. Therefore, if you received a $10,000 grant and paid $4,000 in taxes, you would still have $6,000 left over after paying the taxes. Yes, 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 ActVisit disclaimer page. Therefore, there must be a connection to non-parental child care in order to use CCDF funds. See FAQ 34 for further discussion about amending CCDF plans to change a tribes definition of Indian child during the pandemic. 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. However, adding plexi-glass barriers to an existing entry way or entrance would likely be allowable. This resource includes the session descriptions, recordings, and resources shared during the BUILD 2022 National Conference. Wages for child care personnel, pay increases, bonuses, stipends, and benefits are all allowable uses for the grant funds. Regarding federal tax rules, please contact your tax preparer or the Internal Revenue Service for guidance. The $39 billion will be provided through two funds: (1) $24 billion in child care stabilization funding for child care providers to reopen or stay open, provide safe and healthy learning . The Child Care Stabilization Base Grant's requirement to use 70% of funds to increase compensation for staff regularly caring for children did not apply to One-Time Supplemental Stabilization Grants. This could include posting a PDF copy or screenshots of the applications. Tribes Tribal Lead Agencies have additional flexibilities to meet the unique needs of the populations they serve. 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. Carefully tracking payments is an important and helpful way to help minimize compliance risks. OCC encourages tribal lead agencies to include center-based and family child care programs outside of their CCDF program, as well as programs that serve school-age children. 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. You would report $5,000 as income and $2,000 as an expense, and end up paying taxes on the difference, or $3,000. 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). Share sensitive information only on official, secure websites. As noted at section 45 CFR 98.21(a)(3) of the CCDF rule, Lead Agencies are prohibited from increasing the family co-payment amount within the minimum 12-month eligibility period (except for families eligible through graduated phase-out). Yes, essential workers are subject to the eligibility requirement that family assets do not exceed $1 million. (45 CFR 75.2Visit disclaimer page), Child care stabilization subgrants included in the ARP ActVisit disclaimer page are benefits to a child care provider and are considered payments made to beneficiaries of a federal program, which is the same as with child care subsidies paid under the voucher program. Once an application is reviewed and approved, an email notification of the approval will be sent to the applicant. OCC has interpreted the stabilization subgrants to be restricted to providers within the tribal lead agencys service area. Q: I did not include the grant I got in 2020 on my 2020 tax return. 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. Q: Is money I received from the Stabilization grant taxable income? Child care programs may apply for only one of three grant opportunities. Q: Will getting this grant put me in a higher tax bracket? Care provided in emergency situations should be of the highest quality that is reasonably practicable given the particular circumstances. The CCDF rules definition of temporary job loss at 45 CFR 98.21(a)(1)(ii) includes, among other circumstances: If a parent has a non-temporary loss of job, the Lead Agency has the flexibility to allow the child to remain eligible through the end of the redetermination period. The process for requesting a reasonable modification can be found at Equal Opportunity and Reasonable Modification. The ARP Act stabilization funds are designed to support the child care market as a whole by covering business related expenses. In addition, states may use CCDF to subsidize child care services for school-age children (up to age 13) that provide care and supervision in situations where schools are not otherwise providing in-person instruction and an outside source pays for instructional services that are delivered in-person in the child care setting. You will always be better off financially after taking a grant, even if it increases your taxes. Attestation: You have attested, when open and providing services, to implement policies in line with guidance and orders from state and local authorities and to the greatest extent possible the When considering changes to policies and program requirements, CCDF Lead Agencies have two main options for such changes: (1) Amend CCDF Program Requirements, through a Plan Amendment if Necessary, and (2) Apply for a Waiver for Extraordinary Circumstances, with subsequent Amendment if needed. Any funds received after the date of permanent closure will need to be returned to EEC. The federal guidance says you should give parents tuition relief, to the extent possible. This is not a requirement. The facility to be constructed must be used principally to provide direct child care services to children. The application indicates that funds can be used to pay for previous program expenses. If a program closes permanently, will the program need to return the grant funds? 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. Some states have decided to be very lenient in how they distribute funds, some have a rigid set of regulations, and some have yet to decide how theyll give out these funds. Grant funds are not a loan that need to be paid back. If so, how do I do this? Lead agencies should balance the need to collect information necessary to ensure funds are being spent correctly and not overly burdening providers. In order to be eligible for an ARP Act 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 on the date of application. 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. Lead agencies do not have to require additional information at the time of the application as part of the certification process. It would also be allowable for the Lead Agency to use CCDF quality dollars to provide grants to impacted child care providers to improve quality and/or maintain the supply of child care. Forthcoming guidance will comprehensively address use of the CCDBG Supplemental funds in the American Rescue Plan Act. Agencies may pay child care programs may apply for only one of three grant opportunities on thin margins there. Not have to require additional information at the time of the populations they serve grant! Tax preparer or the Internal Revenue Service for guidance, short-term measure if approved, these waivers temporarily! 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