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. These subgrants are designed to stabilize existing child care businesses, not fund the start-up or reopening of a provider not open for business. The process for requesting a reasonable modification can be found at Equal Opportunity and Reasonable Modification. No, tribal lead agencies are limited to providing stabilization subgrants to providers within their service area. Care provided in emergency situations should be of the highest quality that is reasonably practicable given the particular circumstances. 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. The Recertification section will contain the list of all applications including - Funding Month, Fund Distribution Status, Projected Amount, and Due Date. 6409, and specifies that, any refund (or advance payment with respect to a refundable credit) made to any individual under this title shall not be taken into account as income, and shall not be taken into account as resources for a period of 12 months from receipt, for purposes of determining the eligibility of such individual (or any other individual) for benefits or assistance (or the amount or extent of benefits or assistance) under any Federal program or under any State or local program financed in whole or in part with Federal funds.. You may view payment status by logging in. Lead agencies should use the definition they use for obligations for regular CCDF funds when determining whether ARP Act stabilization funds are obligated. Q: Can I use this grant to pay myself? The best way to manage your child care stabilization grant funds, White House American Rescue Plan Funding Fact Sheet, Perk Stipends: Everything You Need to Know, Download: The Ultimate Guide to Lifestyle Spending Accounts. 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. Help is on the way! Segregate funds from each of the different grant funding sources. 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 . Child Care Workforce Appreciation Bonus - Now Available Major renovations (which are not allowable) include: Minor building updates or maintenance to the facility and/or grounds that do not change the fundamental structure of the building or alter the function or purpose of the facility (which are allowable). Personal protective equipment, cleaning and sanitization supplies and services, or training and professional development related to health and safety practices. OCFS 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 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? The $3.5 billion in supplemental CCDF CARES Act funding is subject to the same tax rules as regular CCDF funding. 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. These are some of the many questions Ive received during my February 10th webinar How to Save Money on Your 2021 Taxes. Heres a link to the recording and power point for this webinar. Yes, Lead Agencies can provide hazard pay to providers that remain open during COVID-19. EEC will not make an unscheduled visit to conduct fiscal monitoring activities. IMPORTANT: Recertifications for C3 funding between the months of July 2021 and June 2022 need to be completed no later than Monday, August 1, 2022 in LEAD. But childcare providers have been really struggling to stay afloat, and many have resorted to taking on personal debt to get by or temporarily closing altogether. Q: My son is a part-time assistance that I dont do payroll taxes for him. Within the grant attestation, a provider attests to using the funds for only items in the allowable expenditure categories. As this requirement applies to the date of application, a school-age program that is open only 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 summer when the program reopens. Tribes may also use CCDF for minor renovation without prior approval. Checks payable from the business bank account to the sole proprietor/individual, Electronic statements that document funds transferred from the business bank account to the personal bank account, Documentation evidencing expenditures made with grant funds, Responses to questions about general provider information, provider accounting systems/processes, and the internal controls in place, the amount (in dollars) of the expenditure, the category of allowable uses under which the expenditure fall, the type of supporting documentation for the expenditure. 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. KidKare is a comprehensive record keeping program that includes an accounting section that allows you to keep track of all your income and expenses. Child Care Stabilization Grant Questions and Answers. Because efforts to increase access to licensing are considered a supply building activity, funds from this set-aside could be used to create a child care licensing department for the tribe. A: No. 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. Regarding federal tax rules, please contact your tax preparer or the Internal Revenue Service for guidance. Yes. This builds on critical down payments on relief . Such action can only be taken if such re-purposing is allowable under the Lead Agencys rules and if the funds being repurposed meet CCDF requirements and were obligated in FY2018 or FY2019. State tax rules apply. 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. Alternatively, states could provide quality grants to child care providers for supply retention and/or quality improvement activities to benefit the full range of families, which would make the eligibility determination process for individual families immaterial. Each approved program receives a Fixed Costs and Families Grant, based on . OCFS is prioritizing workforce support for child care staff by requiring that at least 75% or the Child Care Stabilization Grant 2.0 for Workforce Supports be spent on workforce support expenses. Q: My business is an S Corporation. 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. The government has taken notice, and their answer is The Child Care Stabilization Grant, part of the American Rescue Plan Act (ARPA). Yes, every licensed child care program site is eligible for a grant; this includes multi-site programs. 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. 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. We encourage family child care providers to contact a tax advisor about what should and should not be reported as part of ones AGI. Tribes will submit Plan amendments to describe their child care stabilization grant activities in 3.1.2j(3) Other Quality Activities of their FY 2020-2022 CCDF Plan. Click Log in on the desired Program to go to that Programs EEC ARPA grants page. Finally, Lead Agencies must inspect child care providers for compliance with fire, health, and safety standards in accordance with 45 CFR 98.42. 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. ) or https:// means youve safely connected to the official website. No, lead agencies are not required to spend down previous supplemental relief funding before spending the ARP Act stabilization funds. Note: the Office of Child Care is issuing this FAQ to lead agencies due to the time sensitive nature and urgency with ensuring that Americans can access the COVID-19 vaccine. Funded by supplemental Child Care Development Block Grant funds through the American Rescue Plan Act (ARPA), this opportunity is intended to help stabilize the cost of maintaining child care programs by supporting the child care workforce, reducing the financial burden of child care for families and ensuring a safe and healthy environment. Absent a waiver, Lead Agencies must require these providers to meet health and safety requirements. Contribute to a SEP IRA or Roth IRA? ACF seeks to support working families with quality child care options for children of all ages and socio-economic backgrounds that encourage learning in a safe environment while ensuring that that program resources are not duplicative of services provided by other entities, such as schools. 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. The BIG Program was specifically designed to support businesses who endured lost revenue due to the COVID-19 public health emergency. 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. 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. A: If you dont spend all of the grant money on items used 100% for your business, it will increase your business profit. The allowable uses of subgrant funds are the same for tribal child care providers as for state and territory providers, except that tribal lead agencies may use any of the stabilization funds for construction or major renovations. 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. Tribes Tribal Lead Agencies have additional flexibilities to meet the unique needs of the populations they serve. Is this grant counted as income? Each months report is due by the last day of the month for the previous month. A: You can include it either on line one (Gross receipts) or line six (Other Income). No. The lead agency may use the ARP Act supplemental CCDF Discretionary funds to reduce or waive copayments for a subpopulation of families eligible to receive CCDF. Grant funding amounts and distribution schedule. As a reminder, child care providers must certify that they will pay at least the same wages and benefits to staff for the duration of the subgrant. To show payments from the business to the person, documentation may include: Records of self-payments of grant funds from the business should be consistent with personal records for tax purposes. See the video here: [video width="1390" height="1000" mp4="http://tomcopelandblog.com/wp-content/uploads/2022/02/Questions-and-Answers-about-Stabilization-Grants.mp4"][/video]. These funds will help early childhood and child care providers keep their doors open and continue to provide these essential services that are critical for a strong economic recovery and a more equitable future. However, equipment, materials, and supplies that are not directly related to child care may be an unallowable use of CCDF funds. Is there a limit to the number of programs that will be funded? If the program is closed during parts of the year due to schedule (e.g., operational only during the school year), they would not be eligible to apply for a subgrant during that time. States and territories were instructed to include these policies in the FY 2022-2024 CCDF Plans due on July 1, 2021. Lead agencies have flexibility in determining how to best meet the goal of prioritizing certain children while complying with the eligibility requirements. Rather, lead agencies define their policies to meet this requirement and report them as part of the CCDF plan (45 CFR 98.16(t)). Federal guidelines require that child care programs cannot reduce an employees hourly rate while participating in this grant opportunity. What are the consequences if a program is selected for fiscal monitoring, and the program is unable to produce all the documentation to support its grant expenditures? This means that funds used to create a licensing department would count toward quality activities or non-direct services rather than administrative purposes. 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. The use of home visiting services to refer/connect children to early care and education services is not by itself a sufficient connection to non-parental child care services to justify the use of ARP Act stabilization funds (or other CCDF funds) for home visiting services. 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. Programs will be prompted (via email and in LEAD) to recertify the application on the first day of the month they are recertifying. If a program is in inactive status for a full month, they are not eligible for grant funding during that month. Therefore, the lead agency cannot require child care providers receiving stabilization funds to use the funds to cover the cost of reduced family payments. 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: In your opinion, if I dont need the grant, should I take it? Q: What impact will receiving this grant have on my Social Security benefits? This could include physically separating checks or depositing the funds in different bank accounts. No. The EITC phases in with earnings and phases out with the greater of earnings or AGI. While tribes have some flexibility in defining "Indian child," the definition must be limited to children from federally recognized Indian tribes, consistent with the CCDBG Act's definition of Indian tribe (45 CFR 98.2Visit disclaimer page). Q: Can I pay myself in one lump sum or do I have to pay myself weekly or biweekly? 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. Handle the applications for stabilization funding does not fall into this category dont need the grant, based on not! 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