In order to be a qualified child care provider and eligible to receive a subgrant, a child care provider must either be open to provide child care services or temporarily closed due to public health, financial hardship, or other reasons relating to the COVID-19 public health emergency at the time of application. No, tribes that are not already part of a consortium cannot pool their ARP Act stabilization funds to administer a single subgrant program. on july 23, 2021, the legislature enacted the child care and development infrastructure grant program, detailed in welfare and institutions code section 10310., a $250 million investment in the child care infrastructure across the state of california that is to be administered in the form of grants by the california department of social services Yes, CCDF lead agencies may reprogram regular CCDF, CARES, or CRRSA funds until the obligation deadlines, which is September 30, 2022, for CARES and CRRSA. If approved, these waivers may temporarily exempt Lead Agencies from meeting health and background checks requirements. Published on Monday, March 22, 2021. Such a record could say, February 23, 2022 - $4,000 pay myself with the Stabilization grant.. The Office of Child Development and Early Learning (OCDEL) made American Rescue Plan Act (ARPA) Stabilization Grants available to eligible child care providers. This blog explores the tax implications of the American Rescue Plan Act (ARPA) Child Care Stabilization Grants for Home-Based Child Care Providers. Consult an accountant or tax professional to understand more about the programs particular tax situation and how this guidance applies. Is this grant counted as income? In addition, CCDF regulations provide that 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 [45 CFR 98.67(a)]Visit disclaimer page. English (US) Log in. Contact your state to get the answer. Tutoring or academic support services that are stand-alone services or delivered outside of child care settings/services are not an allowable use of CCDF. However, adding plexi-glass barriers to an existing entry way or entrance would likely be allowable. Grant navigators are available to assist child care providers with grant applications and other resources. The definition of what counts as income for federal housing assistance is defined by section 3 of the U.S. Housing Act of 1937 and HUDs implementing regulation at 24 CFR 5.609. 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. Eligibility and award amounts will be determined at the site level based on each sites licensed capacity and will consider the communitys SVI. Frequently Asked Questions related to the Child Care Stabilization Grants from the Department of Early Education & Care (EEC). This presents an administrative challenge for using grant funds, because if you dont do it correctly you may lose your funds. There are two payment options: If an organization has more than one Massachusetts location, am I eligible to receive more than one grant? Tribal lead agencies may set-aside up to 20 percent of their ARP Act stabilization funds for administration, supply building, and technical assistance. All of the information and application process for the Child Care Strong program will be available here. No, ARP Act stabilization subgrants cannot be used to assist in the purchase of a child care program. I feel like its just more income I have to claim and pay taxes on. A CCDF Lead Agency should not consider the economic impact payments (up to $1,200 for qualifying individuals and an additional $500 per child) as income for CCDF eligibility or co-payment calculations. It affects how we all work, when we can work and for many, why we work. A: Depends on what your state says. Q: If I use the grant for my IRA, can I deduct 100% of this on my taxes? Rather, lead agencies have the discretion of placing reasonable conditions or timelines with regard to reopening on child care providers who receive a subgrant. Recipients of the C3 grants are not required to spend funds within the same month they are received. The application process and distribution structure varies from state to state, so check your local government website to confirm application deadlines and important dates. While the guidance in this response focuses on how ARP stabilization funds impact the eligibility of child care workers for federal benefit programs, the same guidance would apply to funding from regular CCDF funds and supplemental funds provided under the CARES Act, CRRSA Act, and ARP Act, when the funds are used as stabilization grants or similar provider grants/stipends. Legal non-licensed providers were not eligible for One-Time Supplemental Stabilization Grants. Payments from child care stabilization funding should generally be reported as income. Click Log in on the desired Program to go to that Programs EEC ARPA grants page. Yes, lead agencies may determine which provider types to include in their stabilization subgrant programs, as long as those providers are eligible and qualified as defined in the ActVisit disclaimer page. The statutory requirement at section 658E(c)(2)(S)(ii) of the Child Care and Development Block Grant (CCDBG) Act requires Lead Agencies to support the fixed costs of providing child care services by delinking provider payment rates from an eligible child's occasional absences due to holidays or unforeseen circumstances such as illness, to the extent practicable. ACF strongly encourages that lead agencies disregard this funding when determining eligibility for CCDF. The Department of Children and Families (DCF) has allocated $351 million in funds for the Child Care Counts: Stabilization Payment Program to support Wisconsin's early care and education community. 9858k(b)(1) and 45 CFR 98.56(c)(1). This is not a loan. The Child Care Workforce Stabilization grants supply funding to help child care providers recruit and retain qualified employees as the industry recovers from the pandemic. A: Assuming the money you spend on items for your business are used exclusively for your business, the tax consequences are the same as paying yourself. The government has taken notice, and their answer is The Child Care Stabilization Grant, part of the American Rescue Plan Act (ARPA). While each state, territory, or tribe can specify the specific uses of grant funds, the funds are intended to support providers general operating expenses, wages and benefits to employees and owners, rent, utilities, cleaning and sanitation supplies and services, and other goods and services needed to maintain or resume operations as well as mental health supports for children, families, and employees. Per Federal requirements outlined in The American Rescue Plan (ARP) Act of 2021 (Public Law 117-2), certify that they will meet the following requirements throughout the period of their grants: The provider will, when open and providing services, implement health and safety policies in line with guidance and orders from corresponding state, territorial, tribal, and local authorities and, to the greatest extent possible, implement policies in line with guidance from the Centers for Disease Control and Prevention (CDC). 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. OCC encourages tribes to coordinate with states and tribes regarding tribally affiliated children who do not live in the tribal lead agencys service area. 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. Enter your LEAD username, enter your LEAD password, and click Login. 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. The CCDF final rule at 45 CFR 98.16(aa) requires the Statewide Disaster Plan (or Disaster Plan for a tribes service area) to incorporate guidelines for continuation of child care subsidies and child care services. Lead agencies may determine how they monitor child care providers receiving ARP Act stabilization funds, including what types of documentation and reporting are required. Base amount funds can be used for any approved CCDF activities and are not restricted by spending requirements. Lead Agencies are permitted to use funds for the establishment and maintenance of computerized child care information systems, including data systems. Furthermore, 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. Self-employed FCC providers should keep separate accounts and records for business and personal finances. 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. ) or https:// means youve safely connected to the official website. Thus, we suggest that, if any Lead Agency adopts this interpretation, the agency should check eligibility at the time of termination of benefits to determine whether the minimum 12-month eligibility requirement applies or not. 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. Yes, lead agencies can use funding from the administrative, supply-building, and technical assistance set-aside of up to 10 percent for states and territories and 20 percent for tribes to cover personnel costs associated with administering the stabilization funds, including term-limited staff. Stabilization Grant Q: Is the Stabilization grant taxable income? 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. For example, a Head Start program licensed by the state as of March 11, 2021, would meet the definition of eligible provider at section 2202(a)(2)(B)Visit disclaimer page. This may include additional eligibility criteria (that apply only at redetermination) or adjusting the graduated phase-out levels to help the lead agency manage the population served and ensure that those most in need are receiving services. Eligibility Application Recertification Questionnaire Training Grant Funds See the funding breakdown by state, tribe and territory, and more information about the grant on the White House American Rescue Plan Funding Fact Sheet. Federal guidelines require that child care programs cannot reduce an employees hourly rate while participating in this grant opportunity. DCYF Child Care Stabilization Grant As a result of the Federal American Rescue Plan Act, funds are to be used to stabilize, support, and grow the diverse early learning workforce in a way that rebuilds a stronger child care system and expands access to affordable high-quality care. ATTENTION: Announcing the ARP (American Rescue Plan) Act 2021 Child Care Stabilization Payments. However, Lead Agencies may apply for temporary waivers for extraordinary circumstances in response to emergency situations in accordance with 45 CFR 98.19. How do you determine your salary? This could include physically separating checks or depositing the funds in different bank accounts. On the homepage, click on the grant Management tile to open the grants Management system and Dashboard. For protective services cases, the Lead Agency has the option to waive the family co-payment (in accordance with 45 CFR 98.45(k)(4)) and may waive the income eligibility requirements on a case by case basis in accordance with 45 CFR 98.20(a)(3)(ii)(A). These grants are in addition to other pandemic-related relief funds (e.g., CARES grants, Paycheck Protection Program loans, EIDL loans). Lead agencies should not provide subgrants to providers with a history of fraud or misappropriation. Q: My business is an S Corporation. This means you will pay some additional Social Security taxes, but it also means your higher profit will potentially increase your Social Security benefits. 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. Therefore, this funding is subject to the same tax rules as regular CCDF funding. Therefore, my answers below may not be the same answers your state gives you. You will have to withhold and pay payroll taxes on these amounts. T he O ff i ce of Chi l d Care's st abi l i zat i on grant s are i nt ended f or provi ders f aci ng f i nanci al burdens due t o t he CO V I D-19 pandemi c. T he f unds wi l l assi st i n st abi l i zi ng t he chi l d care 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. Will the Child Care Stabilization Grant funding be considered income when I file my 2021 taxes? Q: In your opinion, if I dont need the grant, should I take it? History of fraud or misappropriation enter your lead username, enter your lead username, enter your lead,... 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