Topics include How to prepare for the grant application. Extensive alteration of a facility such as to significantly change its function and purpose, even if such renovation does not include structural change. 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. Lead agencies have the flexibility to disregard bonuses and increases in pay to child care workers as income when determining a child care workers eligibility for CCDF. When and where will a copy of the slide deck from the C3 training sessions be available? Care provided in emergency situations should be of the highest quality that is reasonably practicable given the particular circumstances. A: Depends on what your state says. Q: If I pay myself, how much will I owe in taxes? Each approved program receives a Fixed Costs and Families Grant, based on . 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. Therefore, the grants could be excluded for SNAP purposes because they may end up being excluded from income as a reimbursementVisit disclaimer page,non-recurring lump sum paymentVisit disclaimer page, or cost of producing self-employment income (once spentVisit disclaimer page). Regarding Federal taxation, please contact the Internal Revenue Service for guidance. 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. Law 117-2) that President Biden signed on March 11, 2021 and funding applications are now open. Broaden the Lead Agencys definition of protective services to permit emergency eligibility as a temporary, short-term measure. I plan to discount the current family tuition evenly. In total, the program provided over $534 million . The purchase of such equipment may be more appropriate in circumstances where the child care provider will use it for additional technology-based learning or recreational activities in the child care program beyond virtual school instruction. In cases where a lead agency includes Head Start programs in their ARP Act stabilization subgrants, lead agencies should ensure that CCDF funds do not duplicate Head Start funds and prioritize child care programs that are in need of financial relief and have received comparatively fewer resources during the COVID-19 public health emergency. Annual Training Costs. FCC programs do not have to serve 10 children at the time of application. Lead agencies may use their stabilization fund set-asides to carry out activities to increase the supply of child care, especially for historically underserved populations. Can I put it on my 2021 tax return? Step 1: Submit an OK Child Care Application Step 2: OKDHS reviews the application Step 3: OKDHS approves the application Step 4: Child care program is notified of approval via email Step 5: Payment will be delivered after the application period ends and your application has been approved. The supplemental appropriations under the CARES Act and the CRRSA Act can be used to provide child care assistance to health care sector employees, emergency responders, sanitation workers, farmworkers, and other workers deemed essential during the response to the coronavirus, without regard to the income eligibility requirements. 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. As noted in 45 CFR 98.16(cc), Lead Agencies must provide descriptions in their CCDF Plans of (1) internal controls to ensure integrity and accountability; (2) processes to investigate and recover fraudulent payments and to impose sanctions on clients or providers in response to fraud; and (3) procedures to document and verify eligibility, pursuant to 45 CFR 98.68. 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? It is a tool to assist child care providers in tracking expenditures made with C3 grant funds. Base amount funds can be used for any approved CCDF activities and are not restricted by spending requirements. Is there a limit to the number of programs that will be funded? Subgrant amounts should reflect the significant resources included in the ARP ActVisit disclaimer page and be substantial enough to stabilize struggling child care providers. These funds, which have different flexibilities and restrictions from regular CCDF funds, can be used to respond to the COVID-19 pandemic while carrying out the activities of CCDF programs. 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. A: No. The supplemental appropriations under the CARES Act and the CRRSA Act can be used, among other purposes, to provide continued payments and assistance to child care providers in the case of decreased enrollment or closures related to coronavirus, and to assure they are able to remain open or reopen. HUD regulations specifically exclude temporary, nonrecurring, or sporadic income from the definition of annual income (24 CFR 5.609(c)(9)). All Lead Agencies may use CARES Act or CRRSA Act funds for minor renovations, as described in 45 CFR 98.56(b), but only Tribal Lead Agencies may use the CARES Act and CRRSA Act funds for construction or major renovations. If a program is in inactive status for a full month, they are not eligible for grant funding during that month. The application period ended December 14, 2022. 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). Thank you for your website feedback! 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)). As a reminder, CRRSA Act funds may be used to waive copays for all eligible families without a CCDF waiver. 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. 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. Minnesota's Child Care Stabilization Grant Program endeavors to provide child care providers with financial support to maintain operations and increase staff compensation. A conservative estimate would be to assume 15 percent for social security/Medicare plus 15 percent federal income tax and about 10 percent for state and local income tax, for a total of 40 percent or $1,400. Yes, lead agencies may incentivize subgrant recipients to implement certain policies, such as higher pay for staff. There are two payment options: If an organization has more than one Massachusetts location, am I eligible to receive more than one grant? What is the difference between a major renovation and minor building updates or maintenance? Law 117-2), signed on March 11, 2021, includes $23.97 billion for child care stabilization grants to be allocated to states, territories, and Tribes based on the current Child Care and Development Block Grant (CCDBG) formula. Lead agencies may also consider how they can pair more flexible funding provided by the CARES Act and CRRSA Act with the more prescriptive ARP Act stabilization funds. Lead agencies are encouraged to use ARP Act supplemental funds, as well as CRRSAVisit disclaimer page and CARES Act funds, to provide relief from copayments for CCDF-eligible families and cover the portion of the child care cost ordinarily covered by copays. Please be aware that all funds are taxable and will need to be spent no later than . Enrollment Capacity Average Enrollment (Before and After Care, Summer Care) 7 Yes. Allowable changes to the tribes definition could include children who are tribal members, whose membership is pending, who are eligible for membership, and/or are children/descendants of members. No, child care providers cannot use ARP Act stabilization funds to cover family copayments or tuition. First, Lead Agencies can consider re-purposing other obligations in FY2018 or FY2019. a Are TDOE regulated programs eligible to apply for funding? 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. This means that funds used to create a licensing department would count toward quality activities or non-direct services rather than administrative purposes. Providers will not be penalized for temporary closures that occur during the grant period, provided they are open and serving children for at least part of that month. Share sensitive information only on official, secure websites. 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]. Is the Child Care Provider Stabilization Grant taxable? 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). NEW (Updated 2-23-22) I have a positive case of COVID-19 in my program, and I have applied for the COVID-19 Child Care Stabilization and Recovery Grants, now what? 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. 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 qualify for the EITCVisit disclaimer page, filing units must not exceed the income/earnings eligibility threshold specific to the filing units filing status (married vs. single/head of household) and number of children (zero, one, two, or three or more). This only applies to Tribal CCDF Plans and not to tribes with approved Public Law 102-477 Plans. During the review process, if additional information is required or revisions are needed, the program will receive an email through LEAD asking for specific revisions. Stipulations for what the funds can be spent on and how to properly report them. ACF strongly recommends that CCDF lead agencies coordinate with the state agency that administers TANF to ensure that child care workers do not lose or experience reductions in their TANF benefits when receiving assistance from the ARP Act child care stabilization funds. Providers can therefore use all or part of the grant to pay themselves. This can be done by transferring money from one bank account to another, writing yourself a check, or leaving money in one bank account and make a note indicating that this is money to pay yourself. . 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. Specifically, providers serving children who receive CCDF services would need to meet requirements for health and safety standards, training, inspections, and background checks. A: Maybe, depending on how much of the grant you dont spend on business items. 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. No. Lead Agencies should ensure that payment practices for each type of provider reflect generally accepted payment practices in order to ensure that families have access to a range of child care options. Therefore, my answers below may not be the same answers your state gives you. Will the Child Care Stabilization Grant funding be considered income when I file my 2021 taxes? Yes, every licensed child care program site is eligible for a grant; this includes multi-site programs. Furthermore, in many states, participation in TANF also makes families automatically eligible for SNAP and/or WIC. 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. Federal regulations do not define unlimited access. Get more information about KidKare. Lead agencies are strongly encouraged to make subgrants available to address personnel costs, but personnel costs are just one of the allowable uses of the subgrant funds, and, depending on the stabilization subgrant program in their state, territory, or tribe, child care providers have discretion in deciding how they use the funds. ACF strongly encourages that lead agencies disregard this funding when determining eligibility for CCDF. Examples of changes that would require a waiver include exempting providers from some or all health and safety standards, health and safety training requirements, background check components; suspending annual inspections of providers; changing income eligibility to be higher than 85% of State Median Income; or changing the subsidy eligibility period to be less than 12 months. Find Stabilization Grant Applications for your State or Territory. Tom Copelands Blog: Taking Care of Business Consult your state for the answer. Any funds received after the date of permanent closure will need to be returned to EEC. Further, expenses incurred by the intermediaries that are not part of the subgrant (i.e., passed through to an eligible child care provider) will count against the set-aside of either up to 10 percent for states and territories or up to 20 percent for tribal lead agencies. Providers receiving stabilization subgrants are not categorized as sub-recipients as defined at 45 CFR 75.2. Snow removal snow or other weather-related services, Installing new interior, carpeting, or flooring, Replacing outdated building fixtures and general repairs, Direct deposit or electronic funds transfer, Document the amount(s) of funds received from each source separately, Review the terms of each grant program to clearly understand the allowable (and nonallowable) uses for each award. (45 CFR 75.2Visit disclaimer page). 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. Within the grant attestation, a provider attests to using the funds for only items in the allowable expenditure categories. The NJ American Rescue Plan (ARP) Stabilization Grant is no longer accepting applications. Lead agencies have wide discretion in how subgrant amounts are formulated, including how current operating expenses are calculated. Applications for the Child Care Stabilization 2.0 for Workforce Supports grant are no longer being accepted. Grant navigators are available to assist child care providers with grant applications and other resources. You can deduct the amount you pay your assistant. Per federal regulations, providers should spend the funding on one or more of the following categories: What documentation is required to support the monthly grant attestations a provider completes each month? You would report $5,000 as income and $2,000 as an expense, and end up paying taxes on the difference, or $3,000. 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. Can the grant funds be used to pay the director/provider? Almost. A: It will depend on your personal finances. If the program is closed due to schedule during the summer, it would not be eligible to apply for a subgrant during that time. The program will aim to alleviate some of the economic and operational hardships caused by the COVID-19 pandemic and response. . Even before the public health emergency, child care provider income was unstable and insufficient to cover the costs of providing high-quality care, and the COVID-19 public health emergency has exacerbated this instability. 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)). Therefore, while providers may choose to increase pay or offer bonuses for their staff in order to take advantage of these incentives, the provider may not opt-out of continuing to pay their staff at least the same wages. Well answer: One of the most common questions about this federal relief program is how much is the grant? Q: How do I find out where to apply for this grant? Paycheck Protection. Lead Agencies may consider additional policies that are fair to providers and promote the financial stability of providers in response to COVID-19. OCC notes that incentives that are not connected to child care programs activities are not an allowable CCDF expenditure. Income is a wholly different financial test from the assets test one could have very little income, but significant assets, and vice versa. Tribes Tribal Lead Agencies have additional flexibilities to meet the unique needs of the populations they serve. Upon approval of the waiver, the Lead Agency has 60 days from the date of approval to submit any associated amendments for the waiver. 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. Yes, Tribes may amend their CCDF Plan to change their definition of Indian Child. While Tribal Lead Agencies 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 98.2). Provider A receives a $3,500[1] grant and uses the entire amount of the grant to pay herself; the full amount of the grant will be taxable, but the provider can spend the funds on whatever she wants (e.g., pay down personal debt, save for an emergency, save for retirement, go on vacation). A Plan amendment should not create any delay since the Lead Agency may proceed with implementing the program change, and subsequently submit the amendment within 60 days. The law specifies that child care providers may use their child care stabilization funds on the following allowable activities: ARP Act stabilization funds cannot be used to cover family copayments or tuition. Child care services with a tutoring or academic support component that are funded through CCDF subsidies must be paid in accordance with the Lead Agencys CCDF payment rates. What dates matter for the child care stabilization grant? Resources highlighting the experiences of CCDF Lead Agencies that awarded grants to child care providers in response to the COVID-19 pandemic. Additional information is available at: https://www.irs.gov/coronavirus/employer-tax-credits. 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 allowable expenditure categories where to apply for funding at: https //www.irs.gov/coronavirus/employer-tax-credits! Is a tool to assist child care child care stabilization grant taxable grant is no longer accepting.., even if such renovation does not include structural change provided over $ 534 million much will owe. 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