There is also not a federal limit on the total dollar amount of stabilization subgrants that a qualified provider can receive. If a Lead Agency obligated funds during that time on activities that meet CCDF requirements and were not charged to their FY2018 CCDF allocation, it could re-purpose those funds and instead claim the obligation against uncommitted funds for FY2018 and liquidate those funds in order to meet the liquidation deadline for FY2018. Here is a link to the U.S. Small Business Administrations webpage on the Paycheck Protection Program (PPP). 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. Federal guidelines require that child care programs cannot reduce an employees hourly rate while participating in this grant opportunity. Yes. Therefore, the applications must include a way for child care providers to certify they will meet these requirements. 9858k(b), and 45 CFR 98.56(c) of the CCDF regulations prohibit spending CCDF for any service provided to students enrolled in grades 1 through 12 during the regular school day. How much will my daycare get from the child care stabilization grant? A provider does not have to be serving a child eligible for CCDF in order to be considered as meeting CCDF requirements. In instances specific to COVID-19, for example, the protective services population, at Lead Agency option, may include children of health care and emergency workers, and other workers deemed essential by public officialsas a temporary, short-term measure. 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 Is the Child Care Provider Stabilization Grant taxable? How is a programs licensed capacity determined? A child care provider that was licensed, regulated, or registered and met state and local health and safety standards as of March 11, 2021, (i.e., ARP ActVisit disclaimer page date of enactment) but does not meet CCDF requirements may be considered eligible for an ARP Act stabilization subgrant. If the payment is a physical check, retain a copy of the bank receipts of the deposit/cashing of the check. Yes, the CCDF, CARES Act, and CRRSA Act program funds may be spent on COVID-19 testing kits. Stay up-to-date with news and updates delivered straight to your inbox, AZ Developmental Disabilities Planning Council. This video identifies the benefits of the child care stabilization grants and the tax consequences of receiving them.We accept comments in the spirit of our . Additionally, child care programs are not subject to report C3 grant funding in the Uniform Financial Report (UFR) submitted to the Commonwealth of Massachusetts' Operational Services Division (OSD). For example, a Lead Agency could increase income eligibility up to 85% of State Median Income; many Lead Agencies currently have lower thresholds. Furthermore, for family child care providers, whether the child care stabilization funding counts as income also depends on whether it is used as income by the family child care provider who receives it. If a program is awarded funding, they are not eligible to apply for another grant for a period of three years. The two-year grant period is scheduled to end in September 2023, meaning eligible employees may receive . 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. The CARES Act and the CRRSA Act do not address the minimum 12-month eligibility period for essential workers; accordingly, regular CCDF/CCDBG rules apply. For each month you receive the CCSG award, a monthly report is due by the last day of the month following your previous months expenditures. Is the Child Care Program Stabilization Funding taxable? Q: How do I pay myself for the hours I work in the weekends or after work hours? Lead agencies should notify a provider as soon as the decision to reverse the application is made and provide information on why it was reversed and an opportunity to appeal the decision. 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. 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. Depending on a lead agencys licensing and health and safety rules, Head Start and Early Head Start programs may meet the criteria to be considered eligible for ARP Act stabilization subgrants. The American Rescue Plan Act of 2021 (ARP Act) (Pub. Q: I gifted some of the grant back to parents because of COVID. These funds are made available to Arizona through the Child Care and Development Fund (CCDF) relief funding appropriated through The American Rescue Plan (ARP) Act of 2021 (Public Law 117-2). We encourage Lead Agencies to take steps to assure that the hazard pay reaches staff actually providing care for those providers. Lead agencies may reverse an application approval prior to the award of funds if something changes between the approval and award, including, but not limited to, a licensing violation or revocation, fraud, or permanent closure of a provider. Take the money! For example, CCDF funds could be used to give packages of gloves and masks to families with the understanding that these materials will be used when parents drop off and pick up children from child care. The ARP ActVisit disclaimer page requires providers to certify that they will provide relief from copayments and tuition payments for the families enrolled in the providers program, to the extent possible, and prioritize such relief for families struggling to make either type of payment (emphasis added). Childcare isnt just a family issue, its a business issue. This page is located more than 3 levels deep within a topic. Not all applications are guaranteed to be approved. 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. The terms included in the Act are broad, and lead agencies have the flexibility to define them. If a program closes permanently, will the program need to return the grant funds? Adhering to your states unique spending and reporting requirements for funds that are part of the grant through the Office of Child Care. Funds received prior to the date of closure may be used for approved expenses. General Grant Questions Q1. 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. IMPORTANT: Recertifications for C3 funding between the months of July 2021 and June 2022 need to be completed no later than Monday. Costs claimed toward the grant must align with your business expenses reported in your federal 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. Self-employed FCC providers should keep separate accounts and records for business and personal finances. Furthermore, given finite CCDF funding to meet child care needs, the federal Office of Child Care encourages Lead Agencies to set parameters that restrict the use of CCDF for child care services during times when schools are open and children are able to attend safely in person. 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)). She may keep the funds in the bank account as an emergency fund for later use or she can spend it as she wishes. Programs that are awarded a grant will receive an IRS Tax Form 1099-NEC. Then put aside some money in a place that is low risk (bank savings account, short-term bond fund or money market account). In this case, she can deduct the business portion of these expenses by estimating the percent of time they will be used for business versus personal purposes (usually her time-space percentage). Thus, we suggest that, if any Lead Agency adopts this interpretation, the agency should check eligibility at the time of termination of benefits to determine whether the minimum 12-month eligibility requirement applies or not. Retaining documentation to support each expenditure (i.e. 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. Because Family Child Care (FCC) providers capacity changes with enrollment, all FCC sites will be calculated using a capacity of 10 slots, regardless of the actual capacity, for the purposes of the formula. The ARP child care stabilization funds would be considered self-employment income for the child care providers since they are not universally exempted from SNAP eligibility determinations by law. 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. 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. Providers may also consider using technological options that allow parents to check-in remotely, including the ability to see their child and child care provider in the child care setting. Allowable changes could include children who are Tribal members, whose membership is pending, who are eligible for membership, and/or are children/descendants of members. OCC has no plans to mandate specific oversight or compliance measures on this policy. Carefully tracking payments is an important and helpful way to help minimize compliance risks. Yes. The Ohio Department of Job and Family Services (ODJFS), Office of Family Assistance, was approved through the State of Ohio Controlling Board and Legislative Appropriation to spend these federal stabilization relief funds. You can pay yourself and then give him a bonus. If a lead agency allows certain limitations to physical access to a child care facility, child care providers who choose to limit physical access should ensure that parents have a way of contacting the child care provider and the ability to see or take their child out of care during regular hours (e.g., some providers bring children to the entrance of the facility to meet parents). Q: If I pay myself will I need to give myself a W-2? 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