No, lead agencies cannot use their ARP Act stabilization set-aside funds to cover family copayments or tuition. This blog explores the tax implications of the American Rescue Plan Act (ARPA) Child Care Stabilization Grants for Home-Based Child Care Providers. Q Im receiving this grant quarterly through April 2023. Yes, CCDF lead agencies may reprogram regular CCDF, CARES, or CRRSA funds until the obligation deadlines, which is September 30, 2022, for CARES and CRRSA. In addition, expenses for this purpose are reported on the ACF-696 of ACF-696T CCDF Financial Reports under the non-direct services for systems expenditures, which are not subject to the five percent cap on administrative expenditures (45 CFR 98.54(b)(1)). No, child care providers receiving subgrants are not required to have or provide a DUNS number or UEI. How will I receive the grant awards? Provider As household income is low enough; she may only owe the 15 percent in social security and Medicare expenses and can keep $2,975 for any use. The Expenditure Tracker can be found on the EEC website under the Resources section: Commonwealth Cares for Children / Child Care Stabilization Grants | Mass.gov. Grant funds are not a loan that need to be paid back. If the program is closed due to schedule during the summer, it would not be eligible to apply for a subgrant during that time. 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. Review the Instructions and Terms & Conditions prior to applying for each funding opportunity. Care provided in emergency situations should be of the highest quality that is reasonably practicable given the particular circumstances. The CARES Act and the CRRSA Act do not address use of funds for construction or renovation; accordingly, regular CCDF/CCDBG rules apply. Lead Agencies have the flexibility to consider whether a provider has received funds from other federal or state programs in deciding how best to direct CARES Act and the CRRSA Act resources, but are encouraged to support providers through this child care crisis. 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). While we support Lead Agencies attempts to stabilize child care supply and funding during the public health emergency, under existing law and rules, it is not allowable for a Lead Agency to use regular CCDF funds to double-pay subsidies to two different providers for the same child for the same time of service. Supporting Family Child Care to Prepare for Child Care Stabilization Grants, Help is on the way! Lead agencies have the flexibility to determine the documentation a child care provider must submit to confirm their current operating expenses and are encouraged to accept a variety of types of documentation and limit burden on applicants. To paint a picture, child care centers today are facing decreasing revenues due to lower enrollment, higher expenses to operate safely during the pandemic, and severe and ongoing staffing difficulties. There are two components of North Carolina's Child Care Stabilization Grants. 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. No. ARP Stabilization Grants Congress awarded approximately $24 billion to the CCDF program with the goal of providing financial relief to child care providers to help defray unexpected business costs associated with the COVID-19 pandemic, and to help stabilize their operations so that they may continue to provide care. 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. A provider does not have to be serving a child eligible for CCDF in order to be considered as meeting CCDF requirements. Is the Child Care Program Stabilization Funding taxable? The eligibility requirements defined at section 98.20(a)Visit disclaimer page of the CCDF regulations have separate financial eligibility requirements one for income and one for assets. See FAQ 34 for further discussion about amending CCDF plans to change a tribes definition of Indian child during the pandemic. Child Care Stabilization Grant Questions and Answers. OCC encourages tribes to coordinate with states and tribes regarding tribally affiliated children who do not live in the tribal lead agencys service area. 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. Tribal lead agencies may use CCDF funds from more than one funding stream (i.e., Mandatory, Discretionary, Supplemental, or stabilization funds) to fund a construction or major renovation project, as indicted in their application for construction or major renovation (https://www.acf.hhs.gov/occ/policy-guidance/tribal-construction-or-major-renovation). Lead Agencies may interpret this provision (i.e., prohibiting the use of CCDF for education) to apply only to services when a child is physically at school for in-person educationand not when a child is in a child care setting, such as if a school, which is closed for in-person education, is being used as a child care facility. American Rescue Plan (ARP) Stabilization Funds. The Child Care Stabilization Grant is considered income and is taxable. Example 3: Provider uses some of the grant to pay herself and some for business expenses. We are sharing the resources below which are designed to support home-based child care providers as they prepare their taxes, including guidance for handling relief funding, including the PPP. Q: On my grant report I listed mortgage and utilities as expenses. Tribal lead agencies may choose to award all of the ARP Act stabilization subgrants to their tribally operated centers. Lead Agencies have the flexibility to determine which children qualify as receiving or needing to receive protective services, and could include families affected by COVID-19 circumstances in that definition as a temporary, short-term measure. Topics include How to prepare for the grant application. Providers who served children receiving subsidies from the following programs in March 2021 will be eligible for a $600 per-child stipend: CalWORKs Stages One, Two (C2AP) and Three (C3AP) Alternative Payment Programs (CAPP) including Migrant Alternative Payment Programs (CMAP) General Child Care and Development Programs (CCTR) States determine which sources to count as income, unless a statute authorizing funding specifically imposes a requirement to include or exclude funds. A: If you pay yourself with the grant and then buy items used 100% for your business, you wont owe any taxes on the amount you use the grant for this purpose. Based on currently available funding, EEC anticipates funding will be available to provide grants from July 2022 through December 2022. We will use this information to improve this page. Lead Agencies may also establish periods of continued assistance longer than three months. A concrete slab in the backyard used for basketball, skating, etc.? 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. The provider should keep two copies of all receipts from purchases made so that one can be kept for her IRS records and the other can be used if required for grant reporting. Lead agencies have flexibility in determining how to best meet the goal of prioritizing certain children while complying with the eligibility requirements. Wisconsin's child care industry continues to face a critical staffing crisis one that is expected to get worse if federal COVID relief funding isn't replaced once it runs out. Q: Can we pay ourselves in 2022 with grant money from 2021? 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 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. Child Care Relief Funds. 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. The government has taken notice, and their answer is The Child Care Stabilization Grant, part of the American Rescue Plan Act (ARPA). Child Care Stabilization Grant OCCRRA is excited about the opportunity to support Ohio's Child Care Stabilization Sub-Grants. You can pay yourself and then give him a bonus. How do I get the childcare stabilization grant? It is a tool to assist child care providers in tracking expenditures made with C3 grant funds. Lead agencies may use regular CCDF, CARES, CRRSA(PDF), and ARP Act Supplemental CCDF Discretionary funds for direct child care services. The ARP Act stabilization funds are designed to support the child care market as a whole by covering business related expenses. However, OCC encourages tribal lead agencies to consider expanding their stabilization funds to include providers in the service area who have not previously been part of their CCDF programs, such as family child care providers. Lead Agencies have the flexibility to define full-time and part-time rates. 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. Do programs have to complete federal grant reporting to receive C3 funding? A: You can apply some of the grant money to cover lost revenue, but you cant deduct lost revenue as a business expense. Programs that are awarded a grant will receive an IRS Tax Form 1099-NEC. Information about stabilization grants including policy guidance, a timeline, and frequently asked questions. Q: How do I create an emergency fund with this grant? 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. In an effort to properly balance these interests, consistent with statutory and regulatory restrictions on the use of CCDF for school, we offer the following: A CCDF Lead Agency has the option to use CCDF to pay for tutoring or academic support services, but only if meeting all of the following conditions: Yes, electronic equipment is an allowable use under CCDBG as an activity to improve the quality of center-based, home-based, or in home child care services provided for school-aged children (45 CFR 95.53(a)(10)). Goods and services necessary to operate, such as materials, equipment, and technology, Comprehensive services including mental health supports for children and employees. Effective July 2022, the CCSG Workforce Amount is awarded to recipients of the CCSG who certify they will use the amount for personnel costs including payroll/wage supplements, bonuses, and employee benefits. Q: How do I find out where to apply for this grant? Programs will be prompted (via email and in LEAD) to recertify the application on the first day of the month they are recertifying. Agreements with intermediaries to administer the subgrants must meet CCDF requirements at 45 CFR 98.11Visit disclaimer page(PDF), including that lead agencies retain overall responsibility for the administration of the program and administrative and implementation responsibilities undertaken by the intermediary must be governed by written agreements. English (US) Log in. Consult an accountant or tax professional to understand more about the programs particular tax situation and how this guidance applies. 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. Each state has its own guidelinescheck your local government website to confirm: Who is eligible and how to apply for the grant. Some page levels are currently hidden. Additional information for tribes that operate their CCDF program under a consolidated 102-477 plan is available here. Thus, a policy that terminates the receipt of the subsidy at redetermination for a child who is otherwise eligible is inconsistent with the law and the rule. around the country, mostly small businesses, who were already operating on thin margins. If after viewing this video and reading these questions and answers, you still have questions, feel free to send me an email at tomcopeland@live.com. 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. The Child Care Relief Fund Technical Assistance Team can be reached by emailing CCReliefFunds@trelliscompany.org or calling 1-833-613-3192. Yes, Lead Agencies may enroll new providers to meet increased demand. Yes, the ARP Act requires lead agencies to make available on the lead agencys website an application for qualified child care providers (section 2202(d)(2)(D)(i)Visit disclaimer page. Q: If I use the grant money to pay myself and then use the money to repair my home or fix my basement, can I deduct this as a business expense? 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. The definition of what counts as income for federal housing assistance is defined by section 3 of the U.S. Housing Act of 1937 and HUDs implementing regulation at 24 CFR 5.609. Q: If I pay my assistant with the grant, do I still have to pay taxes on it? Therefore, there must be a connection to non-parental child care in order to use CCDF funds. 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. 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. 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. On May 10, 2021, the Office of Child Care (OCC) issued guidance (CCDF-ACF-IM-2021-02) for states, territories, and tribes on requirements and recommendations for the child care stabilization funding included in section 2202 of the ARP Act. ***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. What type of private information should not be submitted during the fiscal monitoring review process? The webinar highlighted tools to help apply for the . In addition, Tribes would have to consult with nearby Tribes (if applicable) to ensure children in the adjoining areas are not being served by other Tribes. Lead agencies may also use other COVID relief funds (CARES Act, CRRSA ActVisit disclaimer page, and ARP Act supplemental) and regular CCDF funds to also help providers become CCDF-eligible. Yes. Lead Agencies are permitted to use funds for the establishment and maintenance of computerized child care information systems, including data systems. Child care providers cannot use the C3 grant funds to cover an individuals family subsidy co-payments but can use the funds to stabilize or reduce the tuition charged to families that do not receive subsidies. The Stabilization Payment Program Round 2 is a nine-month payment program that runs . Do programs need to spend all the grant funding each month? 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 See the funding breakdown by state, tribe and territory, and more information about the grant on the. Goods and services necessary to maintain or resume child care services. This session was presented during BUILD 2022 National Conference. 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. Child Care Stabilization Grants The American Rescue Plan Act of 2021 (ARP Act) (Pub. 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)). 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. Funds can be used for this purpose under "goods and services". In addition, CCDF regulations provide that 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 [45 CFR 98.67(a)]Visit disclaimer page. Fiscal monitoring refers to the process EEC will follow to assess if grant award recipients are both using and documenting their use of grant funds correctly. OCC is not imposing a specific timeframe for when a temporarily closed provider due to COVID-19 at the time of application must reopen. CCDF lead agencies have the flexibility to decide whether to disregard many of the COVID-19 supplemental payments to individuals as income when determining eligibility for CCDF subsidies, unless treatment of those payments as income or not is specified in law. It is also important for providers to know that not all business expenses are fully tax deductible. Funds received prior to the date of closure may be used for approved expenses. Each months report is due by the last day of the month for the previous month. 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. Q: When you give a bonus to your staff, do you treat the deduction the same as payroll deductions? 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. Each approved program receives a Fixed Costs and Families Grant, based on . Is our grant amount $15k or $24-$52k? 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, which may include limiting subgrants to tribally operated centers. What can EEC-licensed programs use the C3 grant funds for? Programs should contact an accountant or tax professional to understand more about their particular tax situation and how this guidance applies to their specific business. Lead agencies may define what it means to be regulated or registered in the state, territory, or tribe. Lead agencies have wide discretion in how subgrant amounts are formulated, including how current operating expenses are calculated. The instructions for submitting applications for construction or major renovation (available on the OCC website) require the tribal lead agency to describe the percentage of floor space that will be used to provide direct services to children. Other investments to improve program quality such as supplies, curriculum, screening tools, etc. These are grants offered to child care providers as a part of the American Rescue Plan and are designed to help with operating expenses. 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 Per Federal requirements outlined in The American Rescue Plan (ARP) Act of 2021 (Public Law 117-2), certify that they will meet the following requirements throughout the period of their grants: The provider will, when open and providing services, implement health and safety policies in line with guidance and orders from corresponding state, territorial, tribal, and local authorities and, to the greatest extent possible, implement policies in line with guidance from the Centers for Disease Control and Prevention (CDC). U.S. Department of Health & Human Services, Administration for Native Americans (ANA), Administration on Children, Youth, and Families (ACYF), Office of Child Support Enforcement (OCSE), Office of Human Services Emergency Preparedness and Response (OHSEPR), Office of Legislative Affairs and Budget (OLAB), Office of Planning, Research & Evaluation (OPRE), Public Assistance Reporting Information System (PARIS), section 2202(d)(B)(i) and (ii) of the ARP Act, ARP Act supplemental CCDF Discretionary funds, Coronavirus Response and Relief Supplemental Appropriations (CRRSA) Act, FY 2022-2024 Child Care and Development Fund (CCDF) Plan, FY 2020-2022 CCDF Plan within 60 days of the effective date of implementation, or cost of producing self-employment income (once spent, US Department of Labors webpage on UC benefits related to the COVID-19 outbreak, https://www.acf.hhs.gov/occ/policy-guidance/tribal-construction-or-major-renovation, Rent, utilities, facility maintenance or improvements, or insurance, Personal protective equipment, cleaning and sanitization, or training and professional development related to health and safety, Purchases of or updates to equipment or supplies to respond to the COVID-19 public health emergency, Goods and services necessary to maintain or resume child care services, Mental health support for children and employees, Administering child care stabilization funds, Carrying out activities to increase the supply of child care, Providing technical assistance and support for stabilization applications, Publicizing the availability of ARP Act stabilization funding, Providing technical assistance to providers receiving ARP Act stabilization funds. Tribal lead agencies may use CCDF funds from more than one funding stream (i.e., Mandatory, Discretionary, Supplemental, or stabilization funds) to fund a construction or major renovation project, as indicted in their application for construction or major renovation (. Directors, owners, administrators and/or designated fiscal staff members can access the reporting tool . This will be necessary to access the various supports offered through the Department. These funds represent an unprecedented opportunity that will be difficult to realize without adequate staffing. This is consistent with the statutory requirement at section 658E(c)(2)(S)(ii) of the Act that requires Lead Agencies to support the fixed costs of providing child care services by delinking payments from an eligible child's occasional absences due to holidays or unforeseen circumstances such as illness, to the extent practicable. This still leaves $2,100 for the provider to spend as she chooses (or save it). 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.).