A lock icon ( Purchase of a swim spa for physical therapy, exercise, relaxation? Start-up & Expansion. Lead agencies should balance the need to collect information necessary to ensure funds are being spent correctly and not overly burdening providers. 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. These are some of the many questions Ive received during my February 10th webinar How to Save Money on Your 2021 Taxes. Heres a link to the recording and power point for this webinar. . 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. 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. FCC programs do not have to serve 10 children at the time of application. Yes, Child Care Stabilization Grant funds are considered income by the IRS. Child Care Stabilization Base Grants will be available to all eligible providers on a monthly basis beginning September 2021. Though essential workers are not subject to the income eligibility requirement to receive child care services funded by the COVID-19 supplemental funds, they are subject to the other CCDF program eligibility requirements. As such, the loss of TANF could trigger an automatic loss of SNAP and/or WIC for child care workers. However, OCC encourages tribal lead agencies to include center based and family child care programs outside of the tribally operated centers, as well as programs that serve school-age children. If the program is closed during parts of the year due to schedule (e.g., operational only during the school year), they would not be eligible to apply for a subgrant during that time. Consult your state for the answer. For example, lead agencies may provide stipends to child care providers to cover the cost of transportation to vaccine sites and paid time off to receive the vaccine and recover from any side effects. Agreements with intermediaries to administer the subgrants must meet CCDF requirements at 45 CFR 98.11Visit disclaimer page(PDF), including that lead agencies retain overall responsibility for the administration of the program and administrative and implementation responsibilities undertaken by the intermediary must be governed by written agreements. These funds represent an unprecedented opportunity that will be difficult to realize without adequate staffing. Because the ARP Act Supplemental CCDF Discretionary funds allocated at section 2201 can be used for the same purposes as regular CCDF funds, states and territories making major policy or programmatic changes effective before October 1, 2021, were instructed to submit amendments to their current FY 2019-2021 CCDF Plans. Lead agencies should use the definition they use for obligations for regular CCDF funds when determining whether ARP Act stabilization funds are obligated. States, territories, and tribes must use the majority of these funds to provide subgrants to child care providers. Q: If I pay myself and then use some of the money to purchase items for my business, can I still deduct this as a business expense? 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. Contact the C3 Help Desk: 1-833-600-2074 eecgrantsupport@mtxb2b.com. In almost every situation, a provider will benefit financially from these grants even after taxes. Enrollment Capacity Average Enrollment (Before and After Care, Summer Care) 7 Yes. A: If you dont spend all of the grant money on items used 100% for your business, it will increase your business profit. However, Lead Agencies may apply for temporary waivers for extraordinary circumstances in response to emergency situations in accordance with 45 CFR 98.19. Paying yourself involves nothing more than making a record indicating this. Child Care Stabilization Grant Tax Implications (michigan.gov) 19. Information about stabilization grants including policy guidance, a timeline, and frequently asked questions. The remaining funds may be used for administering the subgrants, providing technical assistance and support for applying for and accessing these subgrants, publicizing the availability of these subgrants, carrying out activities to increase the supply of child care, and providing technical assistance to help child care providers meet certain policies. This funding is subject to the same tax rules as regular CCDF funding. Pandemic Unemployment Assistance, which provides benefits for up to 50 weeks to individuals who are not eligible for regular UC or extended benefits and who have been COVID-impacted with regard to their unemployment (minus any weeks of regular UC and Extended Benefits (EB) the individual received); Pandemic Emergency Unemployment Compensation, which provides an additional 11 weeks of benefits, through March 14, 2021, to individuals who have exhausted their rights to regular state or Federal UC benefits; and. On May 10, 2021, the Office of Child Care (OCC) issued guidance (CCDF-ACF-IM-2021-02) for states, territories, and tribes on requirements and recommendations for the child care stabilization funding included in section 2202 of the ARP Act. When posting information, OCC recommends including details on how interested child care providers can contact the lead agency for more information on accessing and submitting an application. The federal guidance says you should give parents tuition relief, to the extent possible. This is not a requirement. Any program that has closed permanently is not eligible to receive continued grant funding. Set-aside funds can only be used for the following activities: Lead agencies may use the ARP Act supplemental CCDF Discretionary funds to reduce or waive copayments for a subpopulation of families eligible to receive CCDF. To ease service delivery to these children, Lead Agencies may choose to classify them as in need of protective services for purposes of child care subsidy eligibility. Heres a link to the recording and power point for this webinar. Yes, Tribes may amend their CCDF Plan to change their definition of Indian Child. While Tribal Lead Agencies have some flexibility in defining "Indian Child," the definition must be limited to children from federally recognized Indian Tribes, consistent with the CCDBG Act's definition of Indian Tribe (45 CFR 98.2). The Office of Child Care (OCC) notes that in cases where the stabilization subgrants are being awarded to qualified child care providers through intermediaries, those intermediaries are sub-recipients administering a subaward, and, as such, would be subject to rules that apply to sub-recipients, including those related to obtainind a DUNS number or UEI. This will be necessary to access the various supports offered through the Department. These essential functions include (i) continuing payments to child care providers serving children receiving subsidies; (ii) provisions for extending eligibility re-determination for families; (iii) communication with the licensing agency to ensure that licensed programs receiving CCDF funds are safe and operational; (iv) assisting new enrollees or preparing for an influx of families who may need assistance; (v) implementation of a waiting list if the Lead Agency does not have one, as appropriate; and (vi) tracking families receiving subsidies impacted by the disaster. These grants are in addition to other pandemic-related relief funds (e.g., CARES grants, Paycheck Protection Program loans, EIDL loans). The purpose of the child care stabilization grants is to support child care centers and home-based child care providers to stay open or reopen. Questions are grouped in the drop-down menu below into four major categoriesARP Stabilization Grants, Supplemental Funds, Tribes, and Emergency Responseand each category has subcategories. Lead agencies may define what it means to be regulated or registered in the state, territory, or tribe. 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. 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? 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. As part of their ARP Act stabilization subgrant application, child care providers must certify they will pay at least the same amount in weekly wages and maintain the same benefits for each employee throughout the duration of the subgrant. In total, the program provided over $534 million . 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. Specifically, providers serving children who receive CCDF services would need to meet requirements for health and safety standards, training, inspections, and background checks. State tax rules apply. How do I treat this on my taxes? Segregate funds from each of the different grant funding sources. How will I receive the grant awards? The NJ American Rescue Plan (ARP) Stabilization Grant is no longer accepting applications. What type of private information should not be submitted during the fiscal monitoring review process? More information is available from theWhite House American Rescue Plan Funding Fact Sheet. Once an application is reviewed and approved, an email notification of the approval will be sent to the applicant. No. We encourage family child care providers to contact a tax advisor about what should and should not be reported as part of ones AGI. 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. Absence due to the need to care for a family member or an illness; Any reduction in work, training or education hours, as long as the parent is still working or attending training or education; and. This does not require a waiver, but could require a Plan amendment. 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. Share sensitive information only on official, secure websites. 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 . Tribal lead agencies must submit amendments to their current FY 2020-2022 CCDF Plan within 60 days of the effective date of implementation. CCDF Lead Agencies have the option to interpret this provision (prohibiting funding of services during the regular school day) as applying only to services when a child is physically at schooland not when a child is in a child care setting. All organizations receiving funding must report this as income to your program. Child care programs may not furlough any employees while receiving the C3 grant funds. CCDF funds provide financial assistance to low-income families to access child care so they can work or attend a job training or educational program, and provide resources for quality improvement of child care. A Plan amendment should not create any delay since the Lead Agency may proceed with implementing the program change, and subsequently submit the amendment within 60 days. 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