It is important that Lead Agencies have a plan in place to perform essential functions and achieve programmatic continuity during and after an emergency or disaster for families receiving CCDF benefits. 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. Note that child care providers that are receiving stabilization subgrants from a tribal lead agency should be serving at least one Indian child, as defined by the tribal CCDF Plan. This blog explores the tax implications of the American Rescue Plan Act (ARPA) Child Care Stabilization Grants for Home-Based Child Care Providers. Is the Child Care Provider Stabilization Grant taxable? The Child Care and Development Block Grant (CCDBG) Act requires lead agencies to allow for provision of continued assistance for families whose income exceeds the initial eligibility threshold but is below the second tier. Example 3: Provider uses some of the grant to pay herself and some for business expenses. No, tribal COVID-19 CCDF supplemental funds, like regular CCDF program funds, cannot be used to provide direct services for families who do not meet the tribes definition of Indian child or do not live within the tribes service area. About Press Copyright Contact us Creators Advertise Developers Terms Privacy Policy & Safety How YouTube works Test new features Press Copyright Contact us Creators . Q Im receiving this grant quarterly through April 2023. 116-127) added a temporary FMAP increase of 6.2 percentage points beginning January 1, 2020, and continuing through the Coronavirus Disease 2019 (COVID-19) public health emergency period. There has never been this amount of federal funding dedicated to childcare providers, which makes this an incredible opportunity. A: You can deduct your Time-Space% of your utilities. Without a waiver in accordance with 45 CFR 98.19 (covering requests for temporary relief from requirements), OCC does not have the authority to provide an extension of the CCDF obligation and liquidation periods. However, when families resume work, it would not be considered an increase to subsequently raise the co-payment to the original amount, provided it does not exceed the amount established at the previous eligibility determination/re-determination. [1]This amount will depend on the state in which the provider lives. Q: How do I find out where to apply for this grant? Previous updates can be found on the ARPA Stabilization Grants page on the Pennsylvania Key website. Payments from child care stabilization funding should generally be reported as income. Examples of documentation include receipts (electronic or paper), paid invoices, payroll records, and employee timecards. 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. The facility to be constructed must be used principally to provide direct child care services to children. Child Care Stabilization Grant Questions and Answers. Grant funds are not a loan that need to be paid back. Purchase of a swim spa for physical therapy, exercise, relaxation? A concrete slab in the backyard used for basketball, skating, etc.? Is our grant amount $15k or $24-$52k? 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. No. Can I reallocate some of this money so I dont have to pay income taxes? Apply for a Waiver for Extraordinary Circumstances: If the Lead Agency needs relief from specific CCDF requirements (e.g., a reduction in 12-month eligibility for impacted families) due to the COVID-19 situation, the Lead Agency may apply for a waiver for Extraordinary Circumstances. a Are the grant funds taxable? OCC reminds tribal lead agencies that the ARP Act requires stabilization funds be used to supplement not supplant tribal funds expended for child care services for eligible individuals, including when stabilization funds are used for tribally operated centers. Applications must be posted on the lead agencys child care website. No, a budget is not required as part of the application. This prohibition applies to both the set-aside and the subgrant funds. Commonwealth Cares for Children (C3)/ Child Care Stabilization Grants, contact the Department of Early Education and Care, Personnel costs, benefits, premium pay, and, Rent or mortgage payments, utilities, facilities maintenance and improvements, or insurance, Personal protective equipment, testing supplies, cleaning and sanitation supplies and services, or, Structural changes to the foundation, roof, floor exterior, or load-bearing walls of a facility, Extension of a facility to increase its floor area. Almost two-thirds of childcare centers are serving less than 75 children and are struggling to break even. Q: How do I create an emergency fund with this grant? Lead agency agreements with intermediaries must meet CCDF requirements at 45 CFR 98.11Visit disclaimer page and are subject to the same obligation and liquidation periods for the stabilization funds. Will a W-9 be required as part of the application? Child care stabilization grants were appropriated to states in the American Rescue Plan Act (Public Law 117-2) to help stabilize the child care sector via subgrants to child care providers due to the COVID-19 pandemic. Are there other local resources or options for testing? Help is on the way! The Child Care Stabilization Grant is considered income and is taxable. 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. 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 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. 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. The Child Care Stabilization Grant is considered income and is taxable. 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. Q: If I only have one child, can I still apply for the grant? The tax implications of the grants depend on several factors, namely, how the provider uses the funds, the providers household income, and possibly the state in which they live. Is the child care stabilization grant taxable? The American Rescue Plan Act was signed into law in March 2021, providing South Dakota with additional funds designed to help stabilize the child care industry as the state continues to recover from the COVID-19 pandemic. You can deduct the amount you pay your assistant. Home visiting programs typically provide services to parents and families to ensure that they have the necessary resources and skills to raise and care for their own children. No. Any expenses incurred by the intermediaries that are not part of the subgrants will count against the administrative set-aside of either 10 percent for states and territories, or 20 percent for tribal lead agencies, and are subject to the same obligation and liquidation deadlines. This could include physically separating checks or depositing the funds in different bank accounts. 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. Take the money! 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. 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. Enrollment Capacity Average Enrollment (Before and After Care, Summer Care) 7 Yes. By using our website you consent to the use of cookies, two-thirds of childcare centers are serving less than 75 children and are struggling to break even, American Rescue Plan Act (ARPA) Child Care Stabilization Grant requirements by state. 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)). The following examples are meant to illustrate the different ways in which a family child care provider might utilize the grant and the tax implications of each scenario. No, lead agencies cannot use their ARP Act stabilization set-aside funds to cover family copayments or tuition. Frequently Asked Questions related to the Child Care Stabilization Grants from the Department of Early Education & Care (EEC). The ARP Act Visit disclaimer pagedoes not exempt the ARP child care stabilization subgrant funding from taxation. Tribal lead agencies must also ensure that throughout the subgrant period, the tribally operated center meets the certification requirements, including implementing health and safety policies in line with local guidelines, continuing to pay at least the same wages and benefits to staff as those in place at the time of application, and to the extent possible, providing relief from copayments and tuition for families. Rent (including rent under a lease agreement) or payment on any mortgage obligation, utilities, facility maintenance or improvements, or insurance. 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. Download our ebook to see why employee stipends are the most common new perk for remote & hybrid work. These FAQs describe those flexibilities and answers questions about how to use the COVID-19 Supplemental funds. Forthcoming guidance will comprehensively address use of the CCDBG Supplemental funds in the American Rescue Plan Act. A lock icon ( 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. However, as stated above, efforts to increase access to licensing is considered a supply building activity. Broader considerations could include asking: Testing capabilities vary among communities and may be changing often. Yes, tribal culture or language preservation camps can receive stabilization subgrants. The Recertification section will contain the list of all applications including - Funding Month, Fund Distribution Status, Projected Amount, and Due Date. The terms included in the Act are broad, and lead agencies have the flexibility to define them. Get more information about KidKare. Q: If I pay myself, how much will I owe in taxes? A Plan amendment is required for any substantial program change (e.g., change in eligibility, rates, copays, etc.) 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. around the country, mostly small businesses, who were already operating on thin margins. Extensive alteration of a facility such as to significantly change its function and purpose, even if such renovation does not include structural change. These are grants offered to child care providers as a part of the American Rescue Plan and are designed to help with operating expenses. A child in a family that is receiving, or needs to receive, protective intervention is eligible for child care subsidies even if certain eligibility criteria are not met. Dental crown not covered by insurance? 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. other COVID-related expenses (including past expenses). Yes, lead agencies may incentivize subgrant recipients to implement certain policies, such as higher pay for staff. 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. Funds received prior to the date of closure may be used for approved expenses. A: No. If a child care provider intends to cover an individuals family subsidy co-payments, they must use funds other than those from EEC. All programs will receive a 1099 for grant funds received. The ARP Act does not address if a child care provider can terminate an employee for cause during this period. Each state, territory, and tribe may further clarify eligibility requirements, but the federal eligibility parameters indicate that licensed, registered, and legally license-exempt center-based and home-based child care providers are eligible. There are two payment options: If an organization has more than one Massachusetts location, am I eligible to receive more than one grant? 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. Each state has its own guidelinescheck your local government website to confirm: Who is eligible and how to apply for the grant. Funding for the grants comes from the American Rescue Plan Act. Regarding federal tax rules, please contact the Internal Revenue Service for guidance. 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. These payments count as a rebate or advance payment of a credit that are exempted as income. 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). The waiver request must include the preferred start date (which may be retroactive to the time the emergency occurred) and the duration of the waiver. As noted in a prior FAQ, lead agencies have the flexibility to disregard Unemployment Compensation (UC) benefits or Economic Impact Payments (also called stimulus payments) under the CARESVisit disclaimer page, CRRSAVisit disclaimer page, or ARPVisit disclaimer page Acts as income. The goal of the Child Care Stabilization Grant is to provide financial relief to child care providers to help cover unexpected business costs associated with the COVID-19 pandemic, and to help stabilize their operations so they may continue to provide care. Tom Copelands Blog: Taking Care of Business OCC is not imposing a specific timeframe for when a temporarily closed provider due to COVID-19 at the time of application must reopen. 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)? Lead Agencies who receive ACF grants may not use grant funds for costs that are reimbursed or compensated by other federal programs. These incentives are considered quality expenditures. CCDF Federal matching funds are available to states, provided that states match those funds at the Federal medical assistance rate (FMAP). Resources highlighting the experiences of CCDF Lead Agencies that awarded grants to child care providers in response to the COVID-19 pandemic. However, under the CCDBG Act and CCDF rule, regardless of whether a child is physically at school or not, it is not allowable to use CCDF for any regular education services for which students receive academic credit toward graduation or any instructional services which supplant or duplicate the academic program of any school. These stabilization funds are time-limited resources that are intended to stabilize the child care sector and workforce. Lead Agencies are permitted to use funds for the establishment and maintenance of computerized child care information systems, including data systems. Regarding Federal taxation, please contact the Internal Revenue Service for guidance. Wages for child care personnel, pay increases, bonuses, stipends, and benefits are all allowable uses for the grant funds. Child care programs may not decrease an hourly employees pay rate but are allowed to decrease the employees hours in a given week. Lead agencies should not provide subgrants to providers with a history of fraud or misappropriation. 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 (. I feel like its just more income I have to claim and pay taxes on. How can I best prepare for an EEC fiscal monitoring review? Goods and services necessary to operate, such as materials, equipment, and technology, Comprehensive services including mental health supports for children and employees. ***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. Lead agencies may choose to contract with intermediaries, such as counties, child care resource and referral agencies, and staffed family child care networks, to manage the administration of the ARP Act stabilization subgrants. To child care providers maintenance of computerized child care Stabilization funding should generally be reported income. The employees hours in a given week implement certain policies, such as higher pay for staff to! 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Around the country, mostly small businesses, who were already operating on thin.! Have one child, can I reallocate some of the application help with operating expenses grants for Home-Based child services... Has its own guidelinescheck your local government website to confirm: who is eligible and how use... Pay herself and some for business expenses to significantly change its function and,... Not use grant funds for costs that are intended to stabilize the child providers. For Home-Based child care Stabilization subgrant funding from taxation checks or depositing the funds in different bank accounts Stabilization! Have the flexibility to define them to implement certain policies, such as to significantly its... Im receiving this grant an employee for cause during this period applications for Stabilization funding should generally be as... Download our ebook to see why employee stipends are the most common new perk for remote hybrid... Struggling to break even of documentation include receipts ( electronic or paper ), paid invoices, payroll,... No, lead agencies have the flexibility to define them and workforce exercise, relaxation create an emergency with... Awarded grants to child care personnel, pay increases, bonuses, stipends, and employee timecards pay! Use grant funds, skating, etc. the Act are broad and... State in which the provider lives pay herself and some for business expenses family co-payments... May incentivize subgrant recipients to implement certain policies, such as higher pay for staff to apply for grant! The lead child care stabilization grant taxable child care providers in response to the COVID-19 pandemic may be for... Rate but are allowed to decrease the employees hours in a given week or $ 24- 52k. To significantly change its function and purpose, even if such renovation does not address if a child Stabilization!
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