child care stabilization grant taxable

However, the monthly design of grant funding is to ensure that programs have the stable cash flow for ongoing operational costs that adjusts to changing conditions (i.e., staffing changes). There has never been this amount of federal funding dedicated to childcare providers, which makes this an incredible opportunity. Retaining documentation to support each expenditure (i.e. But childcare providers have been really struggling to stay afloat, and many have resorted to taking on personal debt to get by or temporarily closing altogether. If a Lead Agency adopts this interpretation, it would be allowable (but not required) for a Lead Agency to use CCDF for child care services when children are completing remote, virtual, or online schoolwork or instruction while in child care. Fiscal monitoring refers to the process EEC will follow to assess if grant award recipients are both using and documenting their use of grant funds correctly. However, adding plexi-glass barriers to an existing entry way or entrance would likely be allowable. OCC suggests the lead agency document the use of funds, including a written demonstration that the use of funds for incentives is directly connected to a CCDF authorized activity, and that the costs are reasonable and "ordinary and necessary" to accomplish CCDF objectives. Stay tuned for additional updates on this page. However, there may be some situations where child care stabilization funding should not be reported as income by a family child care provider (e.g., if the funding were used to cover rent, and if that did not affect a recipients net income). However, lead agencies do have flexibility in defining unlimited access, and we are deferring to lead agency interpretation, as long as it is recognizably reasonable to the average person, as to how to maintain this policy while balancing health and safety concerns related to the Coronavirus Disease 2019 (COVID-19) public health emergency. Stay up-to-date with news and updates delivered straight to your inbox, AZ Developmental Disabilities Planning Council. Children do not need to be formally involved with child protective services or the child welfare system in order to be considered eligible for CCDF assistance under this category. No other family income will be affected, meaning you wont pay higher taxes on any non-grant income. Eligibility Application Recertification Questionnaire Training Grant Funds Eligibility and award amounts will be determined at the site level based on each sites licensed capacity and will consider the communitys SVI. Adhering to your states unique spending and reporting requirements for funds that are part of the grant through the Office of Child Care. No. 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. Note: Applications for the Child Care Stabilization Grant Program were due by 11:59 PM on March 30, 2022. 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. Regular CCDF funds or COVID relief funds (CARES Act, CRRSA ActVisit disclaimer page, and ARP Act supplemental) have a limit of 15 percent of funds that can be used for administrative purposes. However, equipment, materials, and supplies that are not directly related to child care may be an unallowable use of CCDF funds. 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. 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. The CCDF rules definition of temporary job loss at 45 CFR 98.21(a)(1)(ii) includes, among other circumstances: If a parent has a non-temporary loss of job, the Lead Agency has the flexibility to allow the child to remain eligible through the end of the redetermination period. Any program that has closed permanently is not eligible to receive continued grant funding. What are the consequences if a program is selected for fiscal monitoring, and the program is unable to produce all the documentation to support its grant expenditures? The definition of what counts as income for the EITC is determined at the federal level and includes all income reported to the IRS as part of a tax filers Adjusted Gross Income (AGI). Mental health supports for children and employees. Here are the government resources for the Child Care Stabilization Grant by state: The Child Care Stabilization Grant is part of the American Rescue Plan Act (ARP Act) (Pub. 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. This builds on critical down payments on relief . The Expenditure Tracker can be found on the EEC website under the Resources section: Commonwealth Cares for Children / Child Care Stabilization Grants | Mass.gov. Tribal Lead Agencies must complete the full construction/major renovation application process and receive ACF approval (45 CFR 98.84). Lead Agencies could also apply for a waiver to establish eligibility periods less than 12 months to serve targeted populations (such as health care, emergency, and essential workers) that have a time-limited need for child care. A: If your state audits how you spent the grant, it is not likely they will audit the rest of your business. 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. If a program closes temporarily during the 12-month grant period due to inactive status, will the program still be eligible for the grant during that month? The amount you pay yourself has nothing to do with how many hours you work or when you work. Thus, lead agencies should check their own laws and procedures to ensure that using funds for incentives is acceptable practice. Reprograming funds for other allowable activities does not constitute a cut in funding for child care for eligible individuals and is not considered supplantation. 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. Effective August 2022, all CCSG Monthly Reporting of expenditures will be based on the seven categories listed below: Please review the CCSG Reporting Guide for more details. In addition, the Coronavirus Aid, Relief, and Economic Security (CARES) Act (Public Law 116-136) and Coronavirus Response and Relief Supplemental Appropriations (CRRSA) Act of 2021 (Public Law 116-260) provided a combined $13.5 billion in supplemental CCDF program 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. In addition, the CCDF funds can be used to increase provider payments and bonuses to child care workers during the COVID-19 health emergency and to provide certain types of care (e.g., infant and toddler care or non-traditional hours). Tribes are limited to serving CCDF children within their service area. Child care providers also may not involuntarily furlough employees employed on the date of submission of the application. This presents an administrative challenge for using grant funds, because if you dont do it correctly you may lose your funds. 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. 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. A: Yes! At this time, there is not a federal spending deadline for programs receiving the C3 stabilization funding. Q: Does it matter how much income I made this year to use the Stabilization grant to pay myself? If there are payments not reflected in LEAD or the program has other questions, contact the C3 Help Desk at 1-833-600-2074 or eecgrantsupport@mtxb2b.com. Lead Agencies may consider additional policies that are fair to providers and promote the financial stability of providers in response to COVID-19. 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. For providers that implement this policy, CDC recommends limiting direct contact between parents and staff. The ARP Act Visit disclaimer pagedoes not exempt the ARP child care stabilization subgrant funding from taxation. Therefore, even if a Lead Agency opts to use CCDF to fund a child care providers caregiving and supervision of a child who is participating in remote learning, the Lead Agency cannot use CCDF to fund any instruction or services associated with academic credit or a schools program. For example, a family child care home provider may use the grant to pay her mortgage or rent, but only the portion (percent of the square footage) of the home that is used for the business is tax deductible. Yes, the CCDF, CARES Act, and CRRSA Act program funds may be spent on COVID-19 testing kits. Any funds received after the date of permanent closure will need to be returned to EEC. 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. Umbrella organizations must submit individual applications for each individual site they manage, but they may not submit a single application that covers all managed sites. Resources to help develop communication strategies that will increase awareness and visibility of the child care stabilization grant program. 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. Yes, Lead Agencies can provide hazard pay to providers that remain open during COVID-19. 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? 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. Lead Agencies may interpret this provision (i.e., prohibiting the use of CCDF for education) to apply only to services when a child is physically at school for in-person educationand not when a child is in a child care setting, such as if a school, which is closed for in-person education, is being used as a child care facility. Alternatively, states could provide quality grants to child care providers for supply retention and/or quality improvement activities to benefit the full range of families, which would make the eligibility determination process for individual families immaterial. Tribal lead agencies may set-aside up to 20 percent of their ARP Act stabilization funds for administration, supply building, and technical assistance. These grants, funded with federal stimulus funding through the American Rescue Plan Act, began in September 2021 and are available to eligible child care providers through . The Child Care Stabilization Grant (CCSG) Program sustains Arizona's 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. Help is on the way! Tribal lead agencies may choose to award all of the ARP Act stabilization subgrants to their tribally operated centers. The South Dakota Department of Social Services . Review the grant payments received using LEAD. Each state has its own guidelinescheck your local government website to confirm: Who is eligible and how to apply for the grant. 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. Recipients of the C3 grants are not required to spend funds within the same month they are received. The tutoring or academic support services do not occur during the regular school day pursuant to 42 U.S.C. U.S. Department of Health & Human Services, Administration for Native Americans (ANA), Administration on Children, Youth, and Families (ACYF), Office of Child Support Enforcement (OCSE), Office of Human Services Emergency Preparedness and Response (OHSEPR), Office of Legislative Affairs and Budget (OLAB), Office of Planning, Research & Evaluation (OPRE), Public Assistance Reporting Information System (PARIS), section 2202(d)(B)(i) and (ii) of the ARP Act, ARP Act supplemental CCDF Discretionary funds, Coronavirus Response and Relief Supplemental Appropriations (CRRSA) Act, FY 2022-2024 Child Care and Development Fund (CCDF) Plan, FY 2020-2022 CCDF Plan within 60 days of the effective date of implementation, or cost of producing self-employment income (once spent, US Department of Labors webpage on UC benefits related to the COVID-19 outbreak, https://www.acf.hhs.gov/occ/policy-guidance/tribal-construction-or-major-renovation, Rent, utilities, facility maintenance or improvements, or insurance, Personal protective equipment, cleaning and sanitization, or training and professional development related to health and safety, Purchases of or updates to equipment or supplies to respond to the COVID-19 public health emergency, Goods and services necessary to maintain or resume child care services, Mental health support for children and employees, Administering child care stabilization funds, Carrying out activities to increase the supply of child care, Providing technical assistance and support for stabilization applications, Publicizing the availability of ARP Act stabilization funding, Providing technical assistance to providers receiving ARP Act stabilization funds. The tutoring or academic support services do not duplicate or supplant the academic program of any public or private school, pursuant to 42 USC 9858k(b)(3) and 45 CFR 98.56(c)(3), although the services may supplement or enrich the childs education. The ARP Act stabilization funds are designed to support the child care market as a whole by covering business related expenses. OCC encourages tribal lead agencies to request targeted technical assistance to complete a final application by the required deadline. 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. ***If you do not submit your monthly report by the deadline, you will not receive the following months grant payment*** For example: If you do not submit the August 2022 report by September 30, 2022, your October 2022 grant payment will be placed on hold and you will not receive that payment until you are compliant with reporting. Lead Agencies who receive ACF grants may not use grant funds for costs that are reimbursed or compensated by other federal programs. Can I reallocate some of this money so I dont have to pay income taxes? Thus, a policy that terminates the receipt of the subsidy at redetermination for a child who is otherwise eligible is inconsistent with the law and the rule. 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