There are two components of North Carolina's Child Care Stabilization Grants. Pursuant to the CARES Act language, CARES Act funds can be obligated in fiscal year 2020 or the succeeding two fiscal years (by September 30, 2022). Resources to help develop communication strategies that will increase awareness and visibility of the child care stabilization grant program. The Child Care Stabilization Grant is the sole focus of these fiscal monitoring reviews. Retaining documentation to support each expenditure (i.e. 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. In addition, all tribal lead agencies were allocated $30,000 as a base amount of the ARP Act stabilization funds prior to allocating funds based on the number of children served. However, a child care provider that was not licensed, regulated, or registered and met state and local health and safety standards as of March 11, 2021, must meet CCDF requirements at the time of application in order to be eligible for a child care stabilization subgrant. FAQs in this category focus on questions about how to implement subgrant programs and allowable uses for these funds by the provider. Therefore, a lead agency could define a lack of qualified staff or demand as an accepted reason related to the COVID-19 public health emergency for why a child care provider may be temporarily closed. In addition, many of these individuals are working extended or irregular hours, and under stressful circumstances. State tax rules vary by State. 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. Where not addressed by OCC guidance, OCC will defer to Lead Agencies' reasonable interpretation of these decisions and encourages Lead Agencies to provide guidance to providers on implementation of this policy where they think it is useful. Yes, Child Care Stabilization Grant funds are considered income by the IRS. OCC is not imposing a specific timeframe for when a temporarily closed provider due to COVID-19 at the time of application must reopen. 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. The $3.5 billion in supplemental CCDF CARES Act funding is subject to the same tax rules as regular CCDF funding. Funds will be available to child care providers in the form of: Q: Can I apply for the Stabilization grant if I already received the Paycheck Protection Program loan? Providers must report as taxable income all the money they receive from the Stabilization Grants Explore Tom Copeland's "Child Care Stabilization Grants and New Tax Changes for 2021." and The Tax Implications of the Child Care Stabilization Grants to learn more Resources from Tom Copeland's website Federal law defines income for SNAP. 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. A: Pay yourself first. Lead Agencies also have flexibility in treatment of regular UC benefits. Funds can be used for this purpose under "goods and services". 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. CARES Act funds (including those used for construction and major renovation) must be liquidated by September 30, 2023. 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. No, a budget is not required as part of the application. Yes, Lead Agencies can provide hazard pay to providers that remain open during COVID-19. Adhering to your states unique spending and reporting requirements for funds that are part of the grant through the Office of Child Care. Q: Is it better to pay myself with this grant or spend it on items for my business? In addition, if the Tribes service area overlaps with other Tribes service areas, Tribes should consult to ensure the children in the adjoining areas are not being served by other Tribes. Supporting Centers in Preparing for Child Care Stabilization Grants 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? Like regular tribal CCDF funds, tribal ARP Act stabilization funds are set-aside to serve tribal children. KidKare is a comprehensive record keeping program that includes an accounting section that allows you to keep track of all your income and expenses. Stabilization subgrant funds cannot be used to incentivize license-exempt, non-CCDF-eligible providers to become CCDF-eligible and therefore eligible to receive a subgrant. You can use it for free during a 30 day trial period. Q: My state (Colorado) is requiring that 50% of the grant be used as tuition discounts. 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. What is the New Child Care Stabilization Grant? Grants will support projects that increase licensed or operational child care slots, add slots to meet new time/day requirements of employees, or fill currently licensed (but unfilled) slots for the benefit of employees. In cases where the income of families of essential workers exceeds the federal income eligibility limit of 85% of state median income (SMI), Lead Agencies may terminate CCDF subsidies funded by the CARES Act within the eligibility period without a waiver from ACFfor example, if the Lead Agency reverses their policy to disregard the income for essential workers or when CARES Act funds are depleted. Child Care Stabilization Grant OCCRRA is excited about the opportunity to support Ohio's Child Care Stabilization Sub-Grants. View Additional Policy Resources on the Office of Child Care site. If the payment occurs via direct deposit, record the amount and date of the received payment, as well as the destination account for the funds received. OCC recognizes that tribally operated centers may not need to submit an application to indicate their need for funds because the tribal CCDF program operates the center, but the tribal lead agency is still accountable for assurances about the supplantation requirements and ensuring that the funds are being used for allowable activities. However, this guidance may not apply to other allowable uses of these funds, such as increasing provider payments, improving payment policies, increasing wages for providers, waiving or reducing parent copayments rates, increasing income eligibility for direct services, or other allowable uses. 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). As a result, the children of these workers are vulnerable during this time. Distributing the funds to employees (most states require a portion of grant funds to be paid out to employees)? This only applies to Tribal CCDF Plans and not to tribes with approved Public Law 102-477 Plans. She can deduct these expenses from the taxes she owes, so she will not owe additional taxes if she receives the grant. 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. You may view payment status by logging in. Once an application is reviewed and approved, an email notification of the approval will be sent to the applicant. 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. Providers must submit a monthly report on how all grant funds have been spent. It would be OCCs expectation that Lead Agencies would employ this flexibility only on a temporary basis for the period of the public health emergency related to COVID-19. Child care programs who have received C3 funding are not considered a direct subrecipient of grant funds and, therefore, are not subject to federal reporting. 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. Ive created an instructional video that answers these questions and many more. Personnel Costs (Allowable Workforce Amount Category), Equipment and Supplies for Public Health Emergency. Parents may need additional hours of child care during the time they are receiving or recovering from a COVID-19 vaccine. Lead Agencies should follow their Continuity of Operations Plans (COOPs). No. Programs should spend all funding in accordance with the specific requirements of each grant program. State tax rules apply. You will owe 15.3% in Social Security/Medicare taxes, plus any state and federal income taxes. Federal guidelines require that child care programs cannot reduce an employees hourly rate while participating in this grant opportunity. Topics include How to prepare for the grant application. 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. Eligibility Application Recertification Questionnaire Training Grant Funds 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. Help is on the way! Forthcoming guidance will comprehensively address use of the CCDBG Supplemental funds in the American Rescue Plan Act. The Child Care Stabilization Grant is considered income and is taxable. 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 . A: You can include it either on line one (Gross receipts) or line six (Other Income). Providers must have been licensed or certified by March 11, 2021: Providers licensed after March 11, 2021 must contract with DES in order to qualify for grant funding.In addition, all providers must also: Providers are strongly encouraged to update their operational status with their Licensing authority. other COVID-related expenses (including past expenses). We encourage family child care providers to contact a tax advisor about what should and should not be reported as part of ones AGI. With limited exceptions, home visiting does not fall within any of these allowable uses. The application period ended December 14, 2022. This session was presented during BUILD 2022 National Conference. Now you are on the Dashboard page, scroll down to the Recertification Section. Provider As household income is low enough; she may only owe the 15 percent in social security and Medicare expenses and can keep $2,975 for any use. Top-requested sites to log in to services provided by the state. Because efforts to increase access to licensing are considered a supply building activity, funds from this set-aside could be used to create a child care licensing department for the tribe. We remind Lead Agencies to develop emergency preparedness plans that contain guidelines for continuation of child care subsidies and child care services, which may include the provision of emergency and temporary child care services during a disaster, and temporary operating standards for child care after a disaster. 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. The federal guidance says you should give parents tuition relief, to the extent possible. This is not a requirement. 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. 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. 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. Emergency Responseincludes FAQs about temporary, short-term measures and existing flexibilities available to Lead Agencies under CCDF that may be taken during the current public health emergency in response to COVID-19. 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