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";s:4:"text";s:29753:"Per CCDF regulations, assets can be self-certified by a member of the household. As noted at section 45 CFR 98.21(a)(3) of the CCDF rule, Lead Agencies are prohibited from increasing the family co-payment amount within the minimum 12-month eligibility period (except for families eligible through graduated phase-out). Tribal Lead Agencies must complete the full construction/major renovation application process and receive ACF approval (45 CFR 98.84). If a provider is in the financial position to provide relief from copayments and tuition for families, they should provide that relief and prioritize the relief for families with incomes below 85 percent of state median income. However, because other ARP funding explicitly for Head Start programs is available and Head Start programs have continued to receive federal grants during the pandemic, lead agencies should only include Head Start and Early Head Start programs in the stabilization subgrants under limited circumstances. 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. As we all know, parents need access to safe, quality child care to get back to work. 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. If you are not selected for a review, you should still observe sound documentation practices and prepare as you may be selected for review or asked for supporting documentation by EEC in the future. 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. Other investments to improve program quality such as supplies, curriculum, screening tools, etc. 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). Federal guidelines require that child care programs cannot reduce an employees hourly rate while participating in this grant opportunity. When considering the size of a child care program, lead agencies should use enrollment and/or licensed capacity rather than attendance. These payments count as a rebate or advance payment of a credit that are exempted as income. OCC would presume any decreases in spending on child care services for eligible individuals below the amount that would have been spent under tribal law and policies in place of the date of enactment of the ARP Act (March 11, 2021) to be supplantation. Is our grant amount $15k or $24-$52k? 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). Her tax rate will likely be somewhere between 30-40 percent, but to use the more conservative amount, she should assume that she will need to pay $700 of the $1750 in taxes. Lead Agencies should amend their CCDF Plan with respect to such changes. And while many child care providers have opened back up, its been anything but easy. If a program is awarded funding, they are not eligible to apply for another grant for a period of three years. The $39 billion will be provided through two funds: (1) $24 billion in child care stabilization funding for child care providers to reopen or stay open, provide safe and healthy learning . Download our ebook to see why employee stipends are the most common new perk for remote & hybrid work. Maryland State Department of Education (MSDE) Announces Second Round of Child Care Stabilization Grant Applications December 28, 2021 FOR IMMEDIATE RELEASE: MEDIA CONTACT: Lora Rakowski, lora.rakowski@maryland.gov 410-767-0486 PROGRAM CONTACT: childcaregrants.msde@maryland.gov 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. This is consistent with the statutory requirement at section 658E(c)(2)(S)(ii) of the Act that requires Lead Agencies to support the fixed costs of providing child care services by delinking payments from an eligible child's occasional absences due to holidays or unforeseen circumstances such as illness, to the extent practicable. No, ARP Act stabilization subgrants cannot be used to assist in the purchase of a child care program. Goods and services necessary to operate, such as materials, equipment, and technology, Comprehensive services including mental health supports for children and employees. Once an application is reviewed and approved, an email notification of the approval will be sent to the applicant. The CCSG Workforce Amount began with the July 2022 grant payment for providers starting the month following application approval. FAQs under this heading discuss stabilization subgrants and supplemental funding in relation to Tribal-specific flexibilities. Yes, essential workers are subject to the eligibility requirement that family assets do not exceed $1 million. 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. A: Depends on what your state says. Please limit your input to 500 characters. Lead Agencies have the flexibility to establish continued assistance periods for more than 3 months. Self-employed FCC providers should keep separate accounts and records for business and personal finances. If so, how do I do this? Each state will receive anywhere from $39 million to $2.9 billion in funding from the grant to distribute as they see fit to eligible child-care providers. A: You arent paying yourself for any particular hours you work. 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). Therefore, providers participating in their ARP Act stabilization subgrant programs may terminate an employee for cause during the subgrant period. In order to change their definition of an Indian child, a Tribe would need to submit a CCDF Plan amendment (see Program Instruction CCDF -ACF-PI-2019-03 for more information about submitting CCDF Plan amendments). It is also important for providers to know that not all business expenses are fully tax deductible. No. Lead agencies may use regular CCDF, CARES, CRRSA(PDF), and ARP Act Supplemental CCDF Discretionary funds for direct child care services. Yes, Child Care Stabilization Grant funds are considered income by the IRS. The February 10th webinar was sponsored by KidKare. In other words, there is nothing in the CARES Act that specifically exempts CCDF CARES Act funding from taxation. Stipulations for what the funds can be spent on and how to properly report them. English (US) Log in. 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. Can child care providers use the C3 grant funds to cover an individuals family subsidy co-payments or tuition? 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. She can deduct these expenses from the taxes she owes, so she will not owe additional taxes if she receives the grant. Supporting Family Child Care to Prepare for Child Care Stabilization Grants Regarding federal tax rules, please contact your tax preparer or the Internal Revenue Service for guidance. The best way to manage your child care stabilization grant funds, White House American Rescue Plan Funding Fact Sheet, Perk Stipends: Everything You Need to Know, Download: The Ultimate Guide to Lifestyle Spending Accounts. Lead Agencies also have flexibility in treatment of regular UC benefits. 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. 18. Tribes may also use CCDF for minor renovation without prior approval. 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. Yes, tribal lead agencies may use the entirety of their ARP Act stabilization funds on construction and major renovation. Tribal lead agencies are encouraged to include center-based and family child care programs, as well as programs that serve school-age children in after-school, summer, and weekend programs. Per federal regulations, providers should spend the funding on one or more of the following categories: What documentation is required to support the monthly grant attestations a provider completes each month? The provider will provide relief from copayments and tuition payments for the families enrolled in the providers program, to the extent possible, and prioritize such relief for families struggling to make either type of payment. 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. Do programs have to complete federal grant reporting to receive C3 funding? Applications need only request the minimum information necessary to make the subgrants and meet the federal reporting requirements. 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. 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. That said, if a provider is receiving other public benefits based on income eligibility (e.g., health benefits, tax credits, student financial aid) and this grant increases their taxable income to a level that will make them no longer eligible for those benefits, they may need to look very closely at the cost versus the benefit of receiving a stabilization grant. Therefore, the applications must include a way for child care providers to certify they will meet these requirements. No, lead agencies cannot use their ARP Act stabilization set-aside funds to cover family copayments or tuition. This enables Lead Agencies to have the flexibility to define in their CCDF Plan the criteria that the Lead Agency believes would best serve subsidy families, such as families affected by COVID-19 circumstances. With limited exceptions, the funding of home visiting programs is not an allowable use of the ARP Child Care Stabilization Funds. In addition, expenses for this purpose are reported on the ACF-696 of ACF-696T CCDF Financial Reports under the non-direct services for systems expenditures, which are not subject to the five percent cap on administrative expenditures (45 CFR 98.54(b)(1)). 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. 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. What happens after a program submits an application? Lead agencies that want to exempt essential workers from the family asset test must request and have an approved waiver from ACF. Lead agencies have wide discretion in how subgrant amounts are formulated, including how current operating expenses are calculated. When do programs need to recertify their application? Lead agencies have the discretion to decide which child care providers are included in their ARP Act stabilization subgrant programs. Some states have decided to be very lenient in how they distribute funds, some have a rigid set of regulations, and some have yet to decide how theyll give out these funds. Q Im receiving this grant quarterly through April 2023. Base amount funds can be used for any approved CCDF activities and are not restricted by spending requirements. Virginia's Child Care Stabilization Grant Program is designed to: Stabilize child care programs now; Support providers to make strategic investments in their programs; Target higher rates of support to providers located in or serving communities hit hardest by the pandemic; and Encourage participation in the Child Care Subsidy Program. What is the difference between a major renovation and minor building updates or maintenance? Can I reallocate some of this money so I dont have to pay income taxes? The ARP Act does not address if a child care provider can terminate an employee for cause during this period. 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, which may include limiting subgrants to tribally operated centers. Using Indiana's federal COVID-19 relief funding, the Office of Early Childhood and Out-of-School Learning (OECOSL) launched the Build, Learn, Grow Stabilization grant program to provide critical funding to early childhood and school-age providers, support their program's operating expenses and help them rebuild their programs for the future. However, even if it does push you into a higher tax bracket, it only means you will pay more in taxes on the grant amount that is in the higher tax bracket. Funds will be available to child care providers in the form of: EEC can then help the provider determine whether any funds need to be returned. Tribes are limited to serving CCDF children within their service area. What type of private information should not be submitted during the fiscal monitoring review process? OCC will review construction and major renovation applications to make sure that the use of ARP Act stabilization funds for construction or major renovation will not result in a decrease in the level of child care services provided in the service area. Some activities would be clearly unallowable like using CCDF to pay for teachers employed by the schools during the school day when the school is in session, but many circumstances in the COVID-19 context are more nuanced. 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. 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. Tribal lead agencies should develop a process to verify the assurances while collecting the information to report on use of funds and data elements about the subgrants and subgrant recipients. Alternatively, a Lead Agency may seek a waiver due to extraordinary circumstances that would allow double subsidy payments to two providers for the same child and period of service. 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. In some cases, funds used to cover operating expenses may be exempt from taxation. States and territories were instructed to include these policies in the FY 2022-2024 CCDF Plans due on July 1, 2021. Paying yourself involves nothing more than making a record indicating this. In order to qualify for a child care stabilization subgrant, a child care provider must 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. Amend CCDF Program Requirements, through a Plan Amendment if Necessary: If the Lead Agency needs to revise some program policies, but would still be in compliance with federal requirements, they can do so without a waiver (e.g., expanding definition of protective services to accommodate impacted families; waiving copays for a portion of the caseload, etc.). Use this button to show and access all levels. Federal law defines income for SNAP. If approved, these waivers may temporarily exempt Lead Agencies from meeting health and background checks requirements. The Child Care Stabilization Grant (CCSG) Program sustains Arizonas 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. 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. Should I apply for the Stabilization grant?, Is the money I received from the grant taxable income, even if I didnt receive Form 1099?, Is it better to pay myself or spend it on my business?. IMPORTANT: Recertifications for C3 funding between the months of July 2021 and June 2022 need to be completed no later than Monday. To access your existing Child Care Stabilization Grant application, please go to childcare-grants.ocfs.ny.gov. Programs should contact an accountant or tax professional to understand more about their particular tax situation and how this guidance applies to their specific business. Provider A receives a $3,500[1] grant and uses the entire amount of the grant to pay herself; the full amount of the grant will be taxable, but the provider can spend the funds on whatever she wants (e.g., pay down personal debt, save for an emergency, save for retirement, go on vacation). The American Rescue Plan Act was signed into law in March 2021, providing South Dakota with additional funds designed to help stabilize the child care industry as the state continues to recover from the COVID-19 pandemic. In almost every situation, a provider will benefit financially from these grants even after taxes. You will probably owe no more than 40% of the grant in taxes. The CARES Act and the CRRSA Act do not address use of funds for construction or renovation; accordingly, regular CCDF/CCDBG rules apply. The application indicates that funds can be used to pay for previous program expenses. If you do so, this will help support the work I do helping family child care providers be more successful as a business. 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. 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. However, since every situation is unique and states may release additional requirements or restrictions, providers should always consult a tax professional to obtain advice specific to their own unique situation. Refer to the disbursement schedule linked within the grant dashboard in the LEAD portal. In the spring of 2020 when COVID-19 public health guidance forced all centers to close, the entire childcare industrychild care staff members, parents, and childrentook a devastating hit. If a program closes permanently, will the program need to return the grant funds? As such, states and territories cannot use CARES Act or CRRSA Act funds for construction or major renovation. Lead agencies are encouraged to include center-based and family child care programs, as well as programs that serve school-age children. Likewise, lead agencies have the flexibility to disregard payments made to youth in, or formerly in, foster care through the Chafee Program for Successful Transition to Adulthood as income. You may view payment status by logging in. No, there is not a federal limit on the dollar amount of an ARP Act stabilization subgrant. For example, providing families with sanitation and cleaning supplies to use at home would have little to do with the provision of child careand, therefore, would be an unallowable CCDF expenditure. I feel like its just more income I have to claim and pay taxes on. How do I treat this on my taxes? Adhering to your states unique spending and reporting requirements for funds that are part of the grant through the Office of Child Care. Yes, Lead Agencies can provide hazard pay to providers that remain open during COVID-19. Child Care Stabilization Grant Tax Implications (michigan.gov) 19. A lock icon ( How will I know if Im required to participate in the fiscal monitoring process? Q: What if I paid myself with this grant and then later realize that I can use it for items used 100% for my business. Q: Can we pay ourselves in 2022 with grant money from 2021? As a result, the children of these workers are vulnerable during this time. The dynamic environment associated with the COVID-19 pandemic has created new challenges for federal, state, and local policy makers charged with the administration of the CCDF program. About On April 9, 2021, the Delaware Department of Health and Social Services and the Delaware Department of Education announced that the Delaware Early Education and Child Care Stabilization Fund will provide $66,752,816 in direct grants to support eligible early child care professionals across Delaware. You should amend your 2020 taxes and report it as income and pay taxes on the amended return. No, CCDF funds cannot be used to purchase laptops or equipment solely for the purpose of allowing children to access virtual school instruction from home. If you are a non-profit or not-for-profit organization, this funding is tax exempt. A .mass.gov website belongs to an official government organization in Massachusetts. Providers who received an initial disbursement will receive email notifications via NJCCIS when they are eligible to recertify, this process will begin in December 2022. If there are multiple Programs registered, Search Provider to quickly locate the Provider. All programs will receive a 1099 for grant funds received. Tax Considerations Monthly ReportingGENERAL What is the purpose of the stabilization grants? 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. For Group and School Age/Center-Based (GSA)programs, the formula will use a centers total licensed capacity to calculate the base amount of the monthly payment. States and territories are restricted from using CCDF funds for major renovations but can use CCDF funds for minor renovations. This enhanced FMAP rate has the effect of decreasing the amount that states will be required to spend to claim their full CCDF match allotment. pdf Child Care Restoration Grants Funding Summary . Q: If I pay myself will I need to give myself a W-2? 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 . A: No! Lead Agencies have fiduciary responsibility to protect the integrity of the CCDF program funds. HUD regulations specifically exclude temporary, nonrecurring, or sporadic income from the definition of annual income (24 CFR 5.609(c)(9)). The plan includes $24 billion in child care stabilization grant funding for states, territories, and tribes to distribute within their state using the Child Care and Development Grant (CCDBG) formula. 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. Q: Do we need to enter into KidKare if I am paying myself? Based on currently available funding, EEC anticipates funding will be available to provide grants from July 2022 through December 2022. Lead Agencies should consider whether there are more appropriate sources of fundingsuch as public education dollarsto pay for this equipment. Child Care Relief Funds. First, Lead Agencies can consider re-purposing other obligations in FY2018 or FY2019. 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. The CCSG application is now closed. The following examples are meant to illustrate the different ways in which a family child care provider might utilize the grant and the tax implications of each scenario. The ARP ActVisit disclaimer page requires providers to certify that they will provide relief from copayments and tuition payments for the families enrolled in the providers program, to the extent possible, and prioritize such relief for families struggling to make either type of payment (emphasis added). 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. 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. Lead agencies are encouraged to use ARP Act supplemental funds, as well as CRRSAVisit disclaimer page and CARES Act funds, to provide relief from copayments for CCDF-eligible families and cover the portion of the child care cost ordinarily covered by copays. These incentives are considered quality expenditures. 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. Child Care Stabilization Grant OCCRRA is excited about the opportunity to support Ohio's Child Care Stabilization Sub-Grants. Welcome to the Child Care Strong grants, administered by MDHS's Division of Early Childhood Care Department. A: It will depend on your personal finances. Goods and services necessary to maintain or resume child care services. Each state has its own guidelinescheck your local government website to confirm: Who is eligible and how to apply for the grant. Intermediaries are subject to the same obligation and liquidation period for ARP Act stabilization funds regardless of whether those funds are for administering the subgrants or one of the administrative, supply building, or technical assistance activities. Childcare isnt just a family issue, its a business issue. 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. As a reminder, child care providers must confirm the data used and the estimated current operating costs as part of their applications. This could include physically separating checks or depositing the funds in different bank accounts. Therefore, this funding is subject to the same tax rules as regular CCDF funding. Tribal lead agencies may use CCDF funds from more than one funding stream (i.e., Mandatory, Discretionary, Supplemental, or stabilization funds) to fund a construction or major renovation project, as indicted in their application for construction or major renovation (https://www.acf.hhs.gov/occ/policy-guidance/tribal-construction-or-major-renovation). 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. If you would like to continue helping us improve Mass.gov, join our user panel to test new features for the site. Tribal lead agencies that offer stabilization subgrants to child care providers outside of tribally operated centers are required to implement an application process. Tribal lead agencies may use CCDF funds from more than one funding stream (i.e., Mandatory, Discretionary, Supplemental, or stabilization funds) to fund a construction or major renovation project, as indicted in their application for construction or major renovation (. 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. ";s:7:"keyword";s:38:"child care stabilization grant taxable";s:5:"links";s:307:"Is Rabbanut Tel Aviv Reliable, How Old Is Lorena Day, Articles C
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