Lead agencies are encouraged to include center-based and family child care programs, as well as programs that serve school-age children. Click Log in on the desired Program to go to that Programs EEC ARPA grants page. If a program closes permanently, will the program need to return the grant funds? A: Yes. However, it would be allowable for a Lead Agency to use the supplemental appropriations under the Coronavirus Aid, Relief, and Economic Security (CARES) Act (Public Law 116-136) or Coronavirus Response and Relief Supplemental Appropriations (CRRSA) Act of 2021 (Public Law 116-260) to pay for both a closed provider and a new temporary replacement provider; the CARES Act and the CRRSA Act specifically say that the supplemental funds can be used to provide continued payments and assistance to child care providers in the case of decreased enrollment or closures related to coronavirus, and to assure they are able to remain open or reopen. Grants will support projects that increase licensed or operational child care slots, add slots to meet new time/day requirements of employees, or fill currently licensed (but unfilled) slots for the benefit of employees. Retaining documentation to support each expenditure (i.e. The amount you pay yourself has nothing to do with how many hours you work or when you work. We encourage family child care providers to contact their local WIC officeVisit disclaimer pagefor more information. As a reminder, child care providers must confirm the data used and the estimated current operating costs as part of their applications. Eligibility and award amounts will be determined at the site level based on each sites licensed capacity and will consider the communitys SVI. EEC will not make an unscheduled visit to conduct fiscal monitoring activities. 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. For example, providing gift cards to child care providers may be allowable if the cards relate to an integral part of the child care program. As such, the loss of TANF could trigger an automatic loss of SNAP and/or WIC for child care workers. The subgrant applications may include check boxes for providers to select, and the lead agency may treat submission of the application as the certification. Mental health supports for children and employees. 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. The CCSG application is now closed. Yes, essential workers are subject to the eligibility requirement that family assets do not exceed $1 million. This tracker should not reflect expenditures made with funds other than the Child Care Stabilization Grant monies. Within the grant attestation, a provider attests to using the funds for only items in the allowable expenditure categories. For example, providing families with sanitation and cleaning supplies to use at home would have little to do with the provision of child careand, therefore, would be an unallowable CCDF expenditure. Section 658E(c)(2)(B) of the Child Care and Development Block Grant (CCDBG) Act, 42 USC 9858c(c)(2)(B), and 45 CFR 98.31 of the CCDF regulations require CCDF lead agencies to have in effect procedures to ensure that child care providers receiving CCDF funds afford parents unlimited access to their children and the providers during normal hours of operation and whenever the children are in the care of the provider. Yes, every licensed child care program site is eligible for a grant; this includes multi-site programs. 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. 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. Providers are allowed to use the subgrant funds to continue to pay full compensation and benefits in order to meet the certification requirements. Each state will receive anywhere from $39 million to $2.9 billion in funding from the grant to distribute as they see fit to eligible child-care providers. Programs will receive this funding by the end of August 2022. Lead Agencies should follow their Continuity of Operations Plans (COOPs). Care provided in emergency situations should be of the highest quality that is reasonably practicable given the particular circumstances. The Child Care Stabilization Grant is considered income and is taxable. A policy that moves families currently receiving subsidies to a waitlist is in direct opposition to the graduated phase-out policy. 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. If you are not selected for a review, you should still observe sound documentation practices and prepare as you may be selected for review or asked for supporting documentation by EEC in the future. Return to Top Application Process To learn more about how to apply, please view our Application Guide or Application Walk Through Video on our website available in English, Spanish, and Vietnamese. OCC encourages tribes to coordinate with states and tribes regarding tribally affiliated children who do not live in the tribal lead agencys service area. After an application is submitted, a confirmation email will be sent to the email address listed in the programs LEAD account profile. 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. Additionally, FMAP rates are applied quarterly, which means that the original FY 2020 FMAP rates apply to CCDF funds received in Q1, but the enhanced FMAP rates apply to CCDF funds received in Q2, Q3, and Q4. Q: Can I use this grant to pay myself? See the funding breakdown by state, tribe and territory, and more information about the grant on the. The responsibilities for document retention are the same regardless of whether you are selected for review. associated with the licensed capacity of 50. ***If you do not submit your monthly report by the deadline, you will not receive the following months grant payment*** For example: If you do not submit the August 2022 report by September 30, 2022, your October 2022 grant payment will be placed on hold and you will not receive that payment until you are compliant with reporting. Q: In your opinion, if I dont need the grant, should I take it? 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. However, Lead Agencies may apply for temporary waivers for extraordinary circumstances in response to emergency situations in accordance with 45 CFR 98.19. This presents an administrative challenge for using grant funds, because if you dont do it correctly you may lose your funds. Can I give him a $500 bonus? OCC is not imposing a specific timeframe for when a temporarily closed provider due to COVID-19 at the time of application must reopen. The statutory requirement at section 658E(c)(2)(S)(ii) of the Child Care and Development Block Grant (CCDBG) Act requires Lead Agencies to support the fixed costs of providing child care services by delinking provider payment rates from an eligible child's occasional absences due to holidays or unforeseen circumstances such as illness, to the extent practicable. The American Rescue Plan Act (ARPA) Child Care Stabilization Grant, which some call the daycare grant, is a federal financial assistance program recently launched by the Office of Child Care to provide $24 billion of economic relief to child care programs impacted by the COVID-19 pandemic across the country. If there are multiple Programs registered, Search Provider to quickly locate the Provider. The IRS has published information indicating that "receipt of a government grant by a business is generally not excluded from the business's gross income under the Federal Tax Code and therefore is taxable." 1099 forms were mailed to programs detailing the amount of C3 funding the program received in 2021. Tribal lead agencies must submit amendments to their current FY 2020-2022 CCDF Plan within 60 days of the effective date of implementation. 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. 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. Please remove any contact information or personal data from your feedback. 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. Stabilization Grants Is the child care stabilization grant taxable? After September 30, 2022, no additional CCSG awards will be made. If there are payments not reflected in LEAD or the program has other questions, contact the C3 Help Desk at 1-833-600-2074 or eecgrantsupport@mtxb2b.com. As an employee stipend software company that specializes in tax compliance, Compt can serve as your trusted guide to help administer the grant money in the form of an employee stipend, while staying fully compliant with federal tax law. T he O ff i ce of Chi l d Care's st abi l i zat i on grant s are i nt ended f or provi ders f aci ng f i nanci al burdens due t o t he CO V I D-19 pandemi c. T he f unds wi l l assi st i n st abi l i zi ng t he chi l d care Please direct questions to ECCgrants@ode.oregon.gov or 971-707-2029 (8 a.m. to 5 p.m. Pacific Time, Monday through Friday). No, child care providers cannot use ARP Act stabilization funds to cover family copayments or tuition. Personal protective equipment, cleaning and sanitization supplies and services, or training and professional development related to health and safety practices. How many months of funding will a program receive? However, equipment, materials, and supplies that are not directly related to child care may be an unallowable use of CCDF funds. Pursuant to the CARES Act language, CARES Act funds can be obligated in fiscal year 2020 or the succeeding two fiscal years (by September 30, 2022). However, the ARP Act stabilization funds are meant to support the child care sector during and after the COVID-19 public health emergency. 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. State tax rules vary by State. Further, expenses incurred by the intermediaries that are not part of the subgrant (i.e., passed through to an eligible child care provider) will count against the set-aside of either up to 10 percent for states and territories or up to 20 percent for tribal lead agencies. Top-requested sites to log in to services provided by the state. FAQs under this heading discuss stabilization subgrants and supplemental funding in relation to Tribal-specific flexibilities. You may view payment status by logging in. You will always be better off financially after taking a grant, even if it increases your taxes. However, in order to ensure compliance with the supplement not supplant requirement, OCC recommends using the ARP Act child care funds to expand the scope of the project rather than amending the funding streams described in the initial application. The Official Child Care Grants Assistance Portal for the State of Virginia. These funds represent an unprecedented opportunity that will be difficult to realize without adequate staffing. Therefore, even if a Lead Agency opts to use CCDF to fund a child care providers caregiving and supervision of a child who is participating in remote learning, the Lead Agency cannot use CCDF to fund any instruction or services associated with academic credit or a schools program. Child Care Stabilization Grant Questions and Answers. The CCSG application is now closed. Q: If someone takes the grant and decides they no longer want to be in daycare, will they have to reimburse the money received? This program doesnt just impact parents and childcare providers either. and is required within 60 days of the effective date of the requirement. The government has taken notice, and their answer is The Child Care Stabilization Grant, part of the American Rescue Plan Act (ARPA). Yes. Providers must have been licensed or certified by March 11, 2021: Providers licensed after March 11, 2021 must contract with DES in order to qualify for grant funding.In addition, all providers must also: Providers are strongly encouraged to update their operational status with their Licensing authority. For example, building a new entrance to better align with CDC health and safety recommendations during drop off/pick up would likely constitute a structural change and would likely not be allowable. 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. Q: When you give a bonus to your staff, do you treat the deduction the same as payroll deductions? Q: If I only have one child, can I still apply for the grant? Q: Is money I received from the Stabilization grant taxable income? 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). Further, providers caring for infants must be aware of, and responsive to, parents who choose to breastfeed while their child is in care (e.g., by making arrangements such as providing space specifically for this purpose). How do I treat this on my taxes? Supporting Family Child Care to Prepare for Child Care Stabilization Grants, Help is on the way! The facility to be constructed must be used principally to provide direct child care services to children. Section 658M(b) of the Child Care and Development Block Grant (CCDBG) Act, 42 U.S.C. 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. An Office of the Administration for Children & Families, for an existing multiyear construction project. Lead Agencies may also establish periods of continued assistance longer than three months. On the homepage, click on the grant Management tile to open the grants Management system and Dashboard. The supplemental appropriations under the CARES Act and the CRRSA Act can be used to provide child care assistance to health care sector employees, emergency responders, sanitation workers. No. Parents may need additional hours of child care during the time they are receiving or recovering from a COVID-19 vaccine. 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 Where to find more information 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. Providers can therefore use all or part of the grant to pay themselves. This can be done by transferring money from one bank account to another, writing yourself a check, or leaving money in one bank account and make a note indicating that this is money to pay yourself. 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