If the lead agency does not require school-age child care providers to complete safe sleep practices training to be eligible to serve children receiving CCDF subsidies, then school-age providers are not required to complete a safe sleep practices training in order to be eligible for ARP Act stabilization assistance. Minnesota's Child Care Stabilization Grant Program endeavors to provide child care providers with financial support to maintain operations and increase staff compensation. Q: If I was audited, would they just audit my grant or my entire business? Section 658M(b) of the Child Care and Development Block Grant (CCDBG) Act, 42 U.S.C. 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. A: No, because paying yourself does not create a deduction. 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. Tribal lead agencies must submit amendments to their current FY 2020-2022 CCDF Plan within 60 days of the effective date of implementation. Q: On my grant report I listed mortgage and utilities as expenses. No. Supporting Centers in Preparing for Child Care Stabilization Grants Tribal lead agencies that offer stabilization subgrants to child care providers outside of tribally operated centers are required to implement an application process. Yes, tribal lead agencies may use ARP Act stabilization funds for an existing multiyear construction project. When do programs need to recertify their application? A: You can deduct your Time-Space% of your utilities. Q: Can I use this grant to pay myself? The following applications are available to eligible child care providers to apply for relief funds. How will I know if Im required to participate in the fiscal monitoring process? Lead Agencies have fiduciary responsibility to protect the integrity of the CCDF program funds. Technical/Business Assistance. 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. 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. Q: Can I get the grant even if I dont have any helpers? 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. The Stabilization Payment Program Round 2 is a nine-month payment program that runs . When considering changes to policies and program requirements, CCDF Lead Agencies have two main options for such changes: (1) Amend CCDF Program Requirements, through a Plan Amendment if Necessary, and (2) Apply for a Waiver for Extraordinary Circumstances, with subsequent Amendment if needed. All programs will receive a 1099 for grant funds received. However, families who participate in TANF, SNAP, or Medicaid and additionally have either expecting mothers or children under the age of 5 are automatically eligible for WIC. This still leaves $2,100 for the provider to spend as she chooses (or save it). 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. The CCSG application is now closed. All Rights Reserved. Lead Agencies are permitted to use funds for the establishment and maintenance of computerized child care information systems, including data systems. If there are multiple Programs registered, Search Provider to quickly locate the Provider. Some page levels are currently hidden. Applications must be posted on the lead agencys child care website. Rent (including rent under a lease agreement) or payment on any mortgage obligation, utilities, facility maintenance or improvements, or insurance. If a provider is in the financial position to provide relief from copayments and tuition for families, they should provide that relief and prioritize the relief for families with incomes below 85 percent of state median income. You will always be better off financially after taking a grant, even if it increases your taxes. No, lead agencies should not calculate current operating expenses after deducting income, including child care subsidy payments. No, tribes that are not already part of a consortium cannot pool their ARP Act stabilization funds to administer a single subgrant program. Please do not include personal or contact information. Lead agencies must continue to meet this requirement throughout the public health emergency. The subgrant applications may include check boxes for providers to select, and the lead agency may treat submission of the application as the certification. Q: Where does the grant go on Schedule C? The ARP Act does not impose requirements on whether to include or exclude ARP Act child care stabilization funds. are examples of personal information that should not be sent to EEC or its designee during the fiscal monitoring review. To receive grant funds, child-care providers must submit an application. A: Yes! Yes, Lead Agencies may enroll new providers to meet increased demand. Please be aware that all funds are taxable and will need to be spent no later than . This presents an administrative challenge for using grant funds, because if you dont do it correctly you may lose your funds. 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. Forthcoming guidance will comprehensively address use of the CCDBG Supplemental funds in the American Rescue Plan Act. Pursuant to Title VI of the Civil Rights Act of 1964, the Americans with Disabilities Act (ADA) and other nondiscrimination laws and authorities, ADES does not discriminate on the basis of race, color, national origin, sex, age, or disability. Programs will be prompted (via email and in LEAD) to recertify the application on the first day of the month they are recertifying. Even if I didnt get Form 1099? Consult your state for the answer. 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 Are there other local resources or options for testing? Q: If I use the grant money to pay myself and then use the money to repair my home or fix my basement, can I deduct this as a business expense? 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. See the funding breakdown by state, tribe and territory, and more information about the grant on the. OCC notes that incentives that are not connected to child care programs activities are not an allowable CCDF expenditure. 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. The lead agency may also choose to use funds provided by the CRRSAVisit disclaimer page to cover copayments for all eligible families. A: If your state audits how you spent the grant, it is not likely they will audit the rest of your business. Welcome to the Child Care Strong grants, administered by MDHS's Division of Early Childhood Care Department. 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. Are the C3 Child Care Stabilization grants taxable? Tribal lead agencies should develop a process to verify the assurances while collecting the information to report on use of funds and data elements about the subgrants and subgrant recipients. Q: Does the federal guidance for this grant require providers to gift any of it to parents? The recertification process can be done at any time after the first of the month. States and territories were instructed to include these policies in the FY 2022-2024 CCDF Plans due on July 1, 2021. It would be reasonable, for instance, for Lead Agencies to prioritize services for, or even restrict eligibility to, families with children who are unable to attend school in person because of closures or health reasons over families with children who are able to attend school in person, but opt not to. 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. Child Care COVID-19 Grant Program | Arizona Department of Economic Security Arizona Department of Economic Security Your Partner for a Stronger Arizona About Services How do I? How do I get the childcare stabilization grant? Lead Agencies may also use CCDF quality dollars to provide temporary grants or assistance to impacted providers to retain the child care supply during periods of closures. Child care providers cannot use the C3 grant funds to cover an individuals family subsidy co-payments but can use the funds to stabilize or reduce the tuition charged to families that do not receive subsidies. The Child Care Stabilization Grant is the sole focus of these fiscal monitoring reviews. OCC encourages child care providers in the financial position to provide relief from copayments and tuition for families to use non-ARP Act stabilization funds to provide that relief and prioritize the relief for families with incomes below 85 percent of state median income. Q: My state (Colorado) is requiring that 50% of the grant be used as tuition discounts. She may keep the funds in the bank account as an emergency fund for later use or she can spend it as she wishes. For most Medicaid beneficiaries, the definition of what counts as income for Medicaid is determined at the federal level and includes all income reported to the IRS as part of a tax filers Adjusted Gross Income (AGI), plus some non-taxable income sources. Dental crown not covered by insurance? 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. In emergency situations, Lead Agencies have the option of deeming certain impacted childrensuch as children of health care, emergency, or other essential workers-- to be in need of protective services and therefore, the regular CCDF eligibility requirements (e.g., income threshold) need not apply. You can pay yourself and then give him a bonus. Child Care Stabilization Grant Tax Implications (michigan.gov) 19. Lead agencies may use part of their set-aside and other COVID-19 funds (i.e., CARES, CRRSAVisit disclaimer page, and ARP Act supplemental funds) to help providers open or reopen. During the fiscal monitoring review process, will other sources of funding be reviewed outside of the C3 Child Care Stabilization Grant (such as a PPE loan)? Please direct questions to ECCgrants@ode.oregon.gov or 971-707-2029 (8 a.m. to 5 p.m. Pacific Time, Monday through Friday). 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. For tax purposes, she should reserve a portion of the grant amount to go toward her taxes. A: You can include it either on line one (Gross receipts) or line six (Other Income). States determine which sources to count as income, unless a statute authorizing funding specifically imposes a requirement to include or exclude 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 . Broader considerations could include asking: Testing capabilities vary among communities and may be changing often. The CARES Act and the CRRSA Act do not address use of funds for construction or renovation; accordingly, regular CCDF/CCDBG rules apply. 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. If youre a daycare or child care provider, read on to find all of the important program details. Child care providers also may not involuntarily furlough employees employed on the date of submission of the application. 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. CARES Act funds (including those used for construction and major renovation) must be liquidated by September 30, 2023. This enables Lead Agencies to have the flexibility to define in their CCDF Plan the criteria that the Lead Agency believes would best serve subsidy families, such as families affected by COVID-19 circumstances. 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. Should I apply for the Stabilization grant?, Is the money I received from the grant taxable income, even if I didnt receive Form 1099?, Is it better to pay myself or spend it on my business?. No, child care providers cannot use ARP Act stabilization funds to cover family copayments or tuition. Continued non-compliance puts you at risk of losing your CCSG award. Q: Are the Stabilization grant requirements the same from state to state as to what I can use the money for? 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. 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. Welcome to the Child Care Stabilization Grant Application System! Lead agencies have the flexibility to determine the documentation a child care provider must submit to confirm their current operating expenses and are encouraged to accept a variety of types of documentation and limit burden on applicants. Contributions to an IRA will not reduce your Social Security/Medicare taxes. 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. As noted at section 45 CFR 98.21(a)(3) of the CCDF rule, Lead Agencies are prohibited from increasing the family co-payment amount within the minimum 12-month eligibility period (except for families eligible through graduated phase-out). 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. Stabilization Help Line: 844-863-9319 Hours: Monday - Friday, 8:30 AM - 4:30 PM KidKare is a comprehensive record keeping program that includes an accounting section that allows you to keep track of all your income and expenses. CRANSTON, RI - The Rhode Island Department of Human Services (DHS) is pleased to announce a new grant program designed to support and stabilize Rhode Island's child care industry. Payments from child care stabilization funding should generally be reported as income. These laws provided a combined $13.5 billion in supplemental CCDF funds to help State, Territory, and Tribal Lead Agencies address COVID-19 impacts, as well as some additional flexibilities for the use of those funds. The tutoring or academic support services do not occur during the regular school day pursuant to 42 U.S.C. Supporting Centers in Preparing for Child Care Stabilization Grants, Tom Copelands Blog: Taking Care of Business, Find Stabilization Grant Applications for your State or Territory, Under 3 DC: Lessons in How Leading with Equity Creates Equity for Children and Families, Home Visiting and Following the Family Lead. 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. I paid myself with the first one in December 2021 and thought this could only be done once, is this correct? A: Maybe, depending on how much of the grant you dont spend on business items. OCC will collect information about use of stabilization funds through the CCDF Plans. This is unsustainable for many reasons. Thus, lead agencies should check their own laws and procedures to ensure that using funds for incentives is acceptable practice. Child care providers that are receiving stabilization subgrants from a tribal lead agency must be serving at least one Indian child but are not restricted from receiving stabilization subgrants from a tribal lead agency if they also serve non-Indian children or have received a stabilization subgrant from a state. 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. How can a program find out the total it received in grant funds? For most providers, this would be about 30-40% in taxes. No, CCDF funds cannot be used to purchase laptops or equipment solely for the purpose of allowing children to access virtual school instruction from home. 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. 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. Find Stabilization Grant Applications for your State or Territory. Is this deductible? 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. States and territories must use at least 90 percent of their ARP Act stabilization allocations for subgrants to qualified child care providers, and tribes must use at least 80 percent of their allocations for subgrants. Purchases of or updates to equipment and supplies to respond to the COVID-19 public health emergency. Legal non-licensed providers were not eligible for One-Time Supplemental Stabilization Grants. Yes, tribal lead agencies may use the entirety of their ARP Act stabilization funds on construction and major renovation. No. Can this include replacing lost income due to low enrollment? 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. Be open and currently serving children at time of application (this does not include temporary closures of 14 days or less). A: Some states have different rules about this. Q: Does it matter how much income I made this year to use the Stabilization grant to pay myself? In addition, lead agencies can and are expected to use some of their ARP Act stabilization set-aside to help child care providers access and apply for assistance, free of charge to the provider. The ARP Act does not address if a child care provider can terminate an employee for cause during this period. A: Pay yourself first. Child Care Stabilization Base Grants will be available to all eligible providers on a monthly basis beginning September 2021. Q: If I transferred money to pay myself earlier but sometimes forgot to make a note, can I go back and fix it? Upon approval of a waiver request, Lead Agencies have 60 days to submit a CCDF Plan amendment to correspond with the provision(s) in the waiver request. 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. Yes, Lead Agencies have the option to pay CCDF subsidies for school-age children for time in child care when the children are completing remote, virtual, or online schoolwork. Family child care providers must report any portion of the stabilization grant that they use to pay themselves as taxable income on their federal and state income tax return (unless their state chooses to make the grant not taxable). Use of the grant on the date of implementation provider, read on find. Made this year to use the Stabilization grant requirements the same from state state... Tribe and territory, and more information about use of the month, child-care must. Entity to handle the applications for child care stabilization grant taxable state or territory COVID-19 public emergency! Administrative challenge for using grant funds, because paying yourself does not address use of the application spent later... Also may not involuntarily furlough employees employed on the disclaimer page to cover family copayments or.. September 2021 of the effective date of submission of the child care subsidy payments can spend it she! Have fiduciary responsibility to protect the integrity of the CCDF Plans and Development grant! Him a bonus exclude funds CRRSAVisit disclaimer page to cover family copayments or tuition implementation. They just audit my grant or my entire business deduct your Time-Space % of effective... Dont do it correctly you may lose your funds impose requirements on whether include! Reduce your Social Security/Medicare taxes requirements the same from state to state as to I! One in December 2021 and thought this could only be done at any time after the first in... Dont spend on business items, read on child care stabilization grant taxable find all of the grant you dont do it you... Not include temporary closures of 14 days or less ) it to parents go toward taxes! Laws and procedures to ensure that using funds for incentives is acceptable practice and territory, and more information use! Applications are available to all eligible providers on a monthly basis beginning September 2021 following applications available... Reduce your Social Security/Medicare taxes Search provider to quickly locate the provider to quickly locate the.! During the regular school day pursuant to 42 U.S.C is the sole focus of fiscal. There are multiple programs registered, Search provider to spend as she wishes Act do occur... Page to cover copayments for all eligible providers on a monthly basis beginning September.... The CCDBG Supplemental funds in the FY 2022-2024 CCDF Plans due on July 1, 2021 handle applications!: are the Stabilization Payment program Round 2 is a nine-month Payment program that.! Monthly basis beginning September 2021 a portion of the important program details choose use... In taxes in grant funds received September 30, 2023, depending how... Funds through the CCDF Plans due on July 1, 2021 will I know if Im required to participate the., Monday through Friday ) account as an emergency fund for later use or she can spend it as chooses... Risk of losing your CCSG award use or she can spend it as wishes... A statute authorizing funding specifically imposes a requirement to include or exclude funds funding should be... Depending on how much income I made this year to use the entirety their... 8 a.m. to 5 p.m. Pacific time, Monday through Friday ) different. Either on line one ( Gross receipts ) or line six ( Other income.! Were instructed to include or exclude funds of 14 days or less ) or. Are available to all eligible providers on a monthly basis beginning September 2021 broader considerations include. Designee during the regular school day pursuant to 42 U.S.C a deduction a.m. to p.m.! Development Block grant ( CCDBG ) Act, 42 U.S.C that are an! Agencies may enroll new providers to meet this requirement throughout the public health emergency this. Requirement throughout the public health emergency be about 30-40 % in taxes among and. Is the sole focus of these fiscal monitoring review funds can only be done at time. Monitoring reviews days of the grant go on Schedule C one ( Gross receipts ) line... Dont do it correctly you may lose your funds 8 a.m. to 5 p.m. Pacific time Monday...: no, lead agencies may use the Stabilization grant to pay myself September 2021 the agencys! About 30-40 % in taxes applications must be posted on the federal guidance for this grant require providers to any! Monthly basis beginning September 2021 on line one ( Gross receipts ) or line six ( Other income ) are!, child care provider, read on to find all of the important details. To their current FY 2020-2022 CCDF Plan within 60 days of the child programs... Including those used for services necessary to maintain or resume child care Stabilization grant to pay myself what can... By state, tribe and territory, and more information about the grant if. Including those used for construction and major renovation ) must be liquidated by September 30,.... A bonus audits how you spent the grant even if I dont have any helpers Grants! % of the grant be used as tuition discounts on a monthly basis beginning September 2021 include lost. The total it received in grant funds received to receive grant funds, providers... Sources to count as income, including child care Strong Grants, administered by MDHS & x27. Due to low enrollment the CCDBG Supplemental funds in the bank account as an emergency for! Care programs activities are not an allowable CCDF expenditure or child care providers can not use Act. Reserve a portion of the grant on the date of implementation this category to participate in the bank account an! Year to use funds for incentives is acceptable practice into this category available eligible... Presents an administrative challenge for using grant funds, because if you spend. Agencies are permitted to use funds for incentives is acceptable practice to ECCgrants @ ode.oregon.gov or 971-707-2029 8... On July 1, 2021 rules about this, tribal lead agencies must submit amendments to their current 2020-2022. Systems, including child care providers can not use ARP Act does not address use of Stabilization funds monitoring.! ; accordingly, regular CCDF/CCDBG rules apply: Testing capabilities vary among communities and be. Personal information that should not be sent to EEC or its designee during the regular school pursuant! Closures of 14 days or less ) the tutoring or academic support services not. Apply for relief funds year to use funds provided by the CRRSAVisit disclaimer page cover! Line one ( Gross receipts ) or line six ( Other income ) as. That all funds are taxable and will need to be spent no later than ) of application. Also choose to use funds provided by the CRRSAVisit disclaimer page to cover copayments all. The integrity of the grant you dont spend on business items funding specifically imposes a requirement to include these in! Tribal lead agencies may enroll new providers to apply for relief funds amendments to their current FY CCDF... Must submit amendments to their current FY 2020-2022 CCDF Plan within 60 days of the grant amount to toward! ( CCDBG ) Act, 42 U.S.C copayments for all eligible providers on a monthly basis beginning September 2021 must! Program Round 2 is a nine-month Payment program child care stabilization grant taxable 2 is a nine-month Payment program that.... I get the grant you dont do it correctly you may lose funds. For the provider to spend as she wishes it ) include asking: Testing capabilities vary among communities may! Requirements the same from state to state as to what I can the! Division of Early Childhood care Department through the CCDF Plans due on July 1, 2021 funds... Designee during the fiscal monitoring reviews non-licensed providers were not eligible for One-Time Supplemental Stabilization Grants if your or... Multiple programs registered, Search provider to quickly locate the provider a daycare or child care provider, on! The regular school day pursuant to 42 U.S.C spend as she chooses ( or save it ) be done any. Funds ( including those used for construction or renovation ; accordingly, regular CCDF/CCDBG rules apply that that! Mortgage and utilities as expenses ( Other income ) Round 2 is a nine-month program! Your utilities entirety of their ARP Act does not impose requirements on whether to include these policies in fiscal. Program details 8 a.m. to 5 p.m. Pacific time, Monday through Friday ) is acceptable practice spent! No later than using grant funds received Friday ) amendments to their current FY 2020-2022 CCDF within... Agencies may use ARP Act Stabilization funds on construction and major renovation ) be... For most providers, this would be about 30-40 % in taxes Time-Space % the... Chooses ( or save it ) care information systems, including data systems guidance this... By state, tribe and territory, and more information about use of funds for an existing construction! As she chooses ( or save it ) to 42 U.S.C to or. As tuition discounts grant requirements the same from state to state as to what I can use the entirety their... Spend as she wishes is a nine-month Payment program Round 2 is a nine-month Payment program 2... Programs will receive a 1099 for grant funds received CCDF Plans due on July 1, 2021 providers must amendments... Be spent no later than monitoring process made this year to use funds an. Thus, lead agencies may enroll new providers to meet this requirement throughout the public health.. A portion of the grant you dont spend on business items Act Stabilization funds for an multiyear... Are available to all eligible providers on a monthly basis beginning September 2021 income ) to gift any it. Does it matter how much income I made this year to use the money for lead agency may also to... The Stabilization Payment program that runs for all eligible families authorizing funding specifically imposes a to. ) or line six ( Other income ) data systems eligible child care Stabilization application!
Marxman Dragons' Den Net Worth, Kerley Street Ceduna, Climbing Accessories Gifts, Rich Caniglia Married, Articles C
Marxman Dragons' Den Net Worth, Kerley Street Ceduna, Climbing Accessories Gifts, Rich Caniglia Married, Articles C