Q: Is it better to pay myself with this grant or spend it on items for my business? The tutoring or academic support services do not occur during the regular school day pursuant to 42 U.S.C. Afterwards it costs $99.00 a year. For example, if the funding were used to cover rent, and if that did not affect a recipients net income, then the funding would not affect WIC eligibility. Rather, lead agencies have the discretion of placing reasonable conditions or timelines with regard to reopening on child care providers who receive a subgrant. The Frequently Asked Questions (FAQs) describes how Lead Agencies can support the stability of the child care sector during and after the COVID-19 public health emergency and measures to prevent, prepare for, and respond to coronavirus. Grant funding amounts and distribution schedule. State tax rules apply. Each approved program receives a Fixed Costs and Families Grant, based on . The NJ American Rescue Plan (ARP) Stabilization Grant is no longer accepting applications. That's according to a recent national survey of early childhood educators, which found 63.3% of Wisconsin centers are experiencing staffing shortages and that . 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? Adhering to your states unique spending and reporting requirements for funds that are part of the grant through the Office of Child Care. Federal law defines income for SNAP. Each months report is due by the last day of the month for the previous month. Q: I did not include the grant I got in 2020 on my 2020 tax return. (See section 2202(d)(B)(i) and (ii) of the ARP ActVisit disclaimer page.). At the end of June, Minnesota's Legislature created Minnesota's Child Care Stabilization Grant Program, which began in June 2021 and will last until June 2023. Eligibility and award amounts will be determined at the site level based on each sites licensed capacity and will consider the communitys SVI. Deducting income before calculating a providers current operating expense as part of determining a subgrant award amount undermines the purpose of the ARP Act stabilization subgrants. The provider must pay each employee (including lead teachers, aides, and staff that are employed by the child care provider to work in transportation, food preparation, and any other staff that the provider employs), at least the same amount in weekly wages and maintain the same benefits (such as health insurance and retirement, if applicable) for the duration of the grant. You will have to withhold and pay payroll taxes on these amounts. The allowable uses of subgrant funds are the same for tribal child care providers as for state and territory providers, except that tribal lead agencies may use any of the stabilization funds for construction or major renovations. Funds are in place so every eligible program can receive one grant per facility/site. Retaining documentation to support each expenditure (i.e. Lead Agencies who receive ACF grants may not use grant funds for costs that are reimbursed or compensated by other federal programs. Regarding Federal taxation, please contact the Internal Revenue Service for guidance. 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. It is also important for providers to know that not all business expenses are fully tax deductible. In addition, the Coronavirus Aid, Relief, and Economic Security Act or the CARES Act (Public Law 116-136) and the 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. 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. A child in a family that is receiving, or needs to receive, protective intervention is eligible for child care subsidies even if certain eligibility criteria are not met. Image credit: https://californiahealthline.org/news/everything-you-need-to-know-about-block-grants-the-heart-of-gops-medicaid-plans/, 1 Hampton Court, Lynnfield, MA 01940 | (617) 858-0006. Broaden the Lead Agencys definition of protective services to permit emergency eligibility as a temporary, short-term measure. To the extent that child care workers continue to participate in TANF, child care workers would not lose SNAP eligibility as a result of receiving child care stabilization funding. By using our website you consent to the use of cookies, two-thirds of childcare centers are serving less than 75 children and are struggling to break even, American Rescue Plan Act (ARPA) Child Care Stabilization Grant requirements by state. The terms included in the Act are broad, and lead agencies have the flexibility to define them. As we all know, parents need access to safe, quality child care to get back to work. Is there a limit to the number of programs that will be funded? Yes, every licensed child care program site is eligible for a grant; this includes multi-site programs. Finally, Lead Agencies must inspect child care providers for compliance with fire, health, and safety standards in accordance with 45 CFR 98.42. 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. When and where will a copy of the slide deck from the C3 training sessions be available? General Grant Questions Q1. First, Lead Agencies can consider re-purposing other obligations in FY2018 or FY2019. Any expenses incurred by the intermediaries that are not part of the subgrants will count against the administrative set-aside of either 10 percent for states and territories, or 20 percent for tribal lead agencies, and are subject to the same obligation and liquidation deadlines. These funds are made available to Arizona through the Child Care and Development Fund (CCDF) relief funding appropriated through The American Rescue Plan (ARP) Act of 2021 (Public Law 117-2). I feel like its just more income I have to claim and pay taxes on. 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. Providers may also consider using technological options that allow parents to check-in remotely, including the ability to see their child and child care provider in the child care setting. 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. Second, if the Lead Agency is unable to re-purpose the funds or does not have policies to allow for this, the Lead Agency can request a waiver of the FY2018 liquidation period due to the COVID-19 for a specified period of time in accordance with 45 CFR 98.19, requests for temporary relief from requirements. January 10, 2023. Will the Child Care Stabilization Grant funding be considered income when I file my 2021 taxes? Q: What impact will receiving this grant have on my Social Security benefits? 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. She can deduct these expenses from the taxes she owes, so she will not owe additional taxes if she receives the grant. Additional instructions for construction and major renovation procedures for Tribes can be found in the Program Instruction (CCDF-ACF-PI-2020-02) on the OCC website. Alternatively, CCDF Lead Agencies also have the option of interpreting the prohibition as applying only during times when schools are open for in-person classes, since there may not be a regular school day during times when schools are closed for in-person classes. The application period ended December 14, 2022. Lead agencies have wide discretion in how subgrant amounts are formulated, including how current operating expenses are calculated. Topics include How to prepare for the grant application. Additional information for tribes that operate their CCDF program under a consolidated 102-477 plan is available here. Regarding federal tax rules, please contact your tax preparer or the Internal Revenue Service for guidance. States determine which sources to count as income, unless a statute authorizing funding specifically imposes a requirement to include or exclude funds. Lead agency agreements with intermediaries must meet CCDF requirements at 45 CFR 98.11Visit disclaimer page and are subject to the same obligation and liquidation periods for the stabilization funds. If a Lead Agency is unable to fully liquidate its CCDF FY2018 incurred obligations by September 30, 2020 due to the COVID-19 pandemic, there are three options to consider. Retention of Child Care Staff. Please limit your input to 500 characters. Q: If someone takes the grant and decides they no longer want to be in daycare, will they have to reimburse the money received? Applications submitted after March 30 will generally not be considered. The Child Care Stabilization Grant is the sole focus of these fiscal monitoring reviews. Consult your state for the answer. In those circumstances, the ARP funds would not affect an individuals annual income used to calculate the individuals portion of rent. ACF additionally recommends seeking funding outside of CCDF to increase testing capabilities for the broader community. Lead Agencies have the flexibility to establish continued assistance periods for more than 3 months. The closure may be a school-wide closure or for off-days of a hybrid model (e.g., a combination of in-person, virtual, and/or off days.) Paying a share of the ARP Act stabilization funds to another entity, including a bookkeeping firm, to apply for stabilization funding and assist with documentation as part of the grant management, is not an allowable use of the ARP Act stabilization funds. Now, thanks to passage of the American Rescue Plan Act of 2021, the child care sector will receive a total of more than $50 billion in direct relief funding. Supporting documentation should demonstrate that the purchase in question falls within at least one of the allowable use categories. What is the New Child Care Stabilization Grant? You cant deduct your mortgage payment, but you can deduct your Time-Space% of mortgage loan interest and you can depreciate your home to account for mortgage principal. 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. Take the money! Lead Agencies have the option to waive the income eligibility requirements for children who receive or need to receive protective services, if determined to be necessary, on a case-by-case basis. Yes. Is the Child Care Program Stabilization Funding taxable? are examples of personal information that should not be sent to EEC or its designee during the fiscal monitoring review. Any funds received after the date of permanent closure will need to be returned to EEC. Extensive alteration of a facility such as to significantly change its function and purpose, even if such renovation does not include structural change. ARP stabilization funds used for tribal construction or major renovation must be liquidated by September 30, 2023; there is no separate obligation deadline for funds used for construction or major renovation. 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. Q: If I was audited, would they just audit my grant or my entire business? American Rescue Plan (ARP) Stabilization Funds. 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. The ARP Act Visit disclaimer pagedoes not exempt the ARP child care stabilization subgrant funding from taxation. Forthcoming guidance will comprehensively address use of the CCDBG Supplemental funds in the American Rescue Plan Act. Other investments to improve program quality such as supplies, curriculum, screening tools, etc. Can this include replacing lost income due to low enrollment? This means you will pay some additional Social Security taxes, but it also means your higher profit will potentially increase your Social Security benefits. 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. Q: My son is a part-time assistance that I dont do payroll taxes for him. Major renovations (which are not allowable) include: Minor building updates or maintenance to the facility and/or grounds that do not change the fundamental structure of the building or alter the function or purpose of the facility (which are allowable). 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. 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? 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). Commonwealth Cares for Children (C3)/ Child Care Stabilization Grants, contact the Department of Early Education and Care, Personnel costs, benefits, premium pay, and, Rent or mortgage payments, utilities, facilities maintenance and improvements, or insurance, Personal protective equipment, testing supplies, cleaning and sanitation supplies and services, or, Structural changes to the foundation, roof, floor exterior, or load-bearing walls of a facility, Extension of a facility to increase its floor area. Section 658M(b) of the Child Care and Development Block Grant (CCDBG) Act, 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. Therefore, if you received a $10,000 grant and paid $4,000 in taxes, you would still have $6,000 left over after paying the taxes. For example, if an application was submitted such that the first month of the grant is September, they would need to recertify at the beginning of October. 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. You will probably owe no more than 40% of the grant in taxes. If you did give parents a discount, the amount you gave as a discount is not a business expense. 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. If a program closes permanently, will the program need to return the grant funds? Thus, lead agencies should check their own laws and procedures to ensure that using funds for incentives is acceptable practice. Annual Training Costs. If a program needs to adjust its site capacity, it should contact a licensor or submit an appeal on the grant using the appeal form embedded in the application. If a tribal lead agency was unable to submit all the information prior to the deadline, a partial application was accepted. See the funding breakdown by state, tribe and territory, and more information about the grant on the. These funds are designed to support the child care market as a whole by covering business related expenses. Minnesota's Child Care Stabilization Grant Program endeavors to provide child care providers with financial support to maintain operations and increase staff compensation. They are: For the purposes of determining CCDF eligibility and co-payment amounts, a Lead Agency may treat the UC benefits from the CARES Act or the CRRSA Act differently from the way it treats regular UC benefits. CCDF funds allocated in FY2018 were available for obligation in FY2018 or FY2019. 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). A: You should absolutely take it. 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? Child Care Start-Up and Expansion Grant Awards a maximum of $5,000 for Child Care Homes, and a maximum of $10,000 for Child Care Centers. Tribal 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 ARP Act. FMAP rates and state matching requirements are published on the GY 2020 state and territory CCDF allocation tables page. 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. The Child Care Relief Fund Technical Assistance Team can be reached by emailing CCReliefFunds@trelliscompany.org or calling 1-833-613-3192. A: Maybe, depending on how much of the grant you dont spend on business items. Not all applications are guaranteed to be approved. Each state has its own guidelinescheck your local government website to confirm: Who is eligible and how to apply for the grant. Therefore, the applications must include a way for child care providers to certify they will meet these requirements. If youre a daycare or child care provider, read on to find all of the important program details. CARES Act funds (including those used for construction and major renovation) must be liquidated by September 30, 2023. A concrete slab in the backyard used for basketball, skating, etc.? 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. How many months of funding will a program receive? What dates matter for the child care stabilization grant? For example, building a new entrance to better align with CDC health and safety recommendations during drop off/pick up would likely constitute a structural change and would likely not be allowable. 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. This video identifies the benefits of the child care stabilization grants and the tax consequences of receiving them.We accept comments in the spirit of our . 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. 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