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). HUD regulations specifically exclude temporary, nonrecurring, or sporadic income from the definition of annual income (24 CFR 5.609(c)(9)). (45 CFR 75.2Visit disclaimer page), Child care stabilization subgrants included in the ARP ActVisit disclaimer page are benefits to a child care provider and are considered payments made to beneficiaries of a federal program, which is the same as with child care subsidies paid under the voucher program. Below is an additional series of questions and answers about the Stabilization Grant. 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. Yes, Lead Agencies may enroll new providers to meet increased demand. Therefore, there must be a connection to non-parental child care in order to use CCDF funds. 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. Q: If I pay myself will I need to give myself a W-2? The CARES Act created three new temporary federally funded unemployment compensation programs to respond to the economic effects of the Coronavirus Disease 2019 (COVID-19). 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. One example is the Rural Tribal COVID-19 Response (RTCR) program established by the Health Resources and Services Administration (HRSA) with CARES Act funds which allows rural tribes to increase their capacity to test suspected COVID-19 patients within their communities. Access to safe and reliable child care is the backbone of our economy and essential for employees to get back to work. I feel like its just more income I have to claim and pay taxes on. Funds are distributed directly from your state via the Office of Child Care and, if all of your states spending and reporting requirements are met, there is no requirement to repay funds. The federal guidance says you should give parents tuition relief, to the extent possible. This is not a requirement. 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. 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. A: Some states have different rules about this. These subgrants are designed to stabilize existing child care businesses, not fund the start-up or reopening of a provider not open for business. Retention of Child Care Staff. 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? In addition, many of these individuals are working extended or irregular hours, and under stressful circumstances. 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). 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.. The lead agency may also choose to use funds provided by the CRRSAVisit disclaimer page to cover copayments for all eligible families. No, lead agencies cannot use their ARP Act stabilization set-aside funds to cover family copayments or tuition. Top-requested sites to log in to services provided by the state. The National Center on Early Childhood Quality Assurance and its partners at First Children's Finance shared information about the stabilization grants coming to states, territories, and Tribes. No. The South Dakota Department of Social Services . January 10, 2023. Q: My business is an S Corporation. However, OCC reminds Lead Agencies that a waiver for extraordinary circumstances is only necessary if the change would not comply with federal CCDF requirements; otherwise, changes can be made through Option 1: amending requirements, through Plan amendments if necessary. Such a record could say, February 23, 2022 - $4,000 pay myself with the Stabilization grant.. CCDF funds provide financial assistance to low-income families to access child care so they can work or attend a job training or educational program, and provide resources for quality improvement of child care. Child care providers may not involuntarily furlough employees from the date of application submission through the duration of the grant. Using Indiana's federal COVID-19 relief funding, the Office of Early Childhood and Out-of-School Learning (OECOSL) launched the Build, Learn, Grow Stabilization grant program to provide critical funding to early childhood and school-age providers, support their program's operating expenses and help them rebuild their programs for the future. Including additional categories of vulnerable children in the definition of protective services is only relevant for the purposes of CCDF eligibility and does not mean that those children should necessarily be considered to be in official protective service situations for other programs or purposes. The program will aim to alleviate some of the economic and operational hardships caused by the COVID-19 pandemic and response. 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. Forthcoming guidance will comprehensively address use of the CCDBG Supplemental funds in the American Rescue Plan Act. Additionally, the ARP Act gave states significant discretion in determining how the child care stabilization grants would be apportioned to child care providers, and self-employment income and exclusion determinations may vary by options selected by the state. No. So, this is not a requirement in Colorado. Federal law defines income for SNAP. Payments to child care workers that are sourced from ARP Act stabilization funding are other types of income that can also be excluded from the eligibility calculation. 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. Personnel costs, including payroll and salaries or similar compensation for an employee (including any sole proprietor or independent contractor), employee benefits, premium pay, or costs for employee recruitment and retention. 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. WV DHHR BFA Division of Early Care and Education is pleased to announce the availability of child care stabilization payments from October 2021 through September 2023 for child care providers that meet . OCC has no plans to mandate specific oversight or compliance measures on this policy. and is required within 60 days of the effective date of the requirement. 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. Segregate funds from each of the different grant funding sources. States have flexibility to exclude ARP Act child care stabilization funding when determining eligibility for TANF, and ACF encourages states to use this flexibility. Any funds received after the date of permanent closure will need to be returned to EEC. Deducting income before calculating a providers current operating expense as part of determining a subgrant award amount undermines the purpose of the ARP Act stabilization subgrants. 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. Stabilization Help Line: 844-863-9319 Hours: Monday - Friday, 8:30 AM - 4:30 PM OCC reminds tribal lead agencies that CCDF funds, including stabilization subgrants, are restricted to serving children who are under age 13, or at the tribal lead agencys option, children under age 19 and are physically or mentally incapable of caring for himself or herself, or under court supervision as defined inthe tribal CCDF Plan. OCC would presume any decreases in spending on child care services for eligible individuals below the amount that would have been spent under tribal law and policies in place of the date of enactment of the ARP Act (March 11, 2021) to be supplantation. State, Territory, and Tribal Lead Agencies have broad flexibility to operate the CCDF program and have a number of options within federal statute and regulation to adapt policies in order to maintain continuity of services for families affected by a disaster. This means you will pay some additional Social Security taxes, but it also means your higher profit will potentially increase your Social Security benefits. If there are multiple Programs registered, Search Provider to quickly locate the Provider. 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. That's according to a recent national survey of early childhood educators, which found 63.3% of Wisconsin centers are experiencing staffing shortages and that . The Child Care Stabilization Base Grant's requirement to use 70% of funds to increase compensation for staff regularly caring for children did not apply to One-Time Supplemental Stabilization Grants. This program doesnt just impact parents and childcare providers either. These grants are in addition to other pandemic-related relief funds (e.g., CARES grants, Paycheck Protection Program loans, EIDL loans). 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 a program needs to adjust its site capacity, it should contact a licensor or submit an appeal on the grant using the appeal form embedded in the application. The Child Care Stabilization Grant (CCSG) Program sustains Arizonas child care network by giving a consistent, reliable funding source directly to child care providers to cover increased cost and challenges due to COVID-19 through June 2023. Consult an accountant or tax professional to understand more about the programs particular tax situation and how this guidance applies. Other funds are not within the scope of this review. 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. 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 are encouraged to include center-based and family child care programs, as well as programs that serve school-age children in after-school, summer, and weekend programs. for administration, supply building, and technical assistance. These funds give them a lifeline at the perfect time. This may include programs that braid or layer CCDF and other child care funds with Head Start or the Head Start program is the only available early care and education program in a community. Paying yourself involves nothing more than making a record indicating this. Intermediaries are subject to the same obligation and liquidation period for ARP Act stabilization funds regardless of whether those funds are for administering the subgrants or one of the administrative, supply building, or technical assistance activities. If a child care provider intends to cover an individuals family subsidy co-payments, they must use funds other than those from EEC. State, territory, and tribal lead agencies may use the supplemental funds to provide bonuses or other financial incentives to child care providers who choose to stay open extra hours or provide care on the weekends so parents can be vaccinated. She can deduct these expenses from the taxes she owes, so she will not owe additional taxes if she receives the grant. Q: In your opinion, if I dont need the grant, should I take it? Below are the steps you will need to take to obtain a listing of your paid amounts. The CCSG Workforce Amount began with the July 2022 grant payment for providers starting the month following application approval. We encourage family child care providers to contact a tax advisor about what should and should not be reported as part of ones AGI. In other words, there is nothing in the CARES Act that specifically exempts CCDF CARES Act funding from taxation. What if I am not selected for a fiscal monitoring review? State tax rules apply. 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