The terms included in the Act are broad, and lead agencies have the flexibility to define them. In this case, she can deduct the business portion of these expenses by estimating the percent of time they will be used for business versus personal purposes (usually her time-space percentage). In a recent webinar hosted by the Office of Child Care Technical Assistance Network, national family child care business expert Tom Copeland provided an overview of the stabilization grants and how family child care homes can handle the tax implications. Yes, the CCDF, CARES Act, and CRRSA Act program funds may be spent on COVID-19 testing kits. To show payments from the business to the person, documentation may include: Records of self-payments of grant funds from the business should be consistent with personal records for tax purposes. The application period ended December 14, 2022. However, as stated above, efforts to increase access to licensing is considered a supply building activity. Such action can only be taken if such re-purposing is allowable under the Lead Agencys rules and if the funds being repurposed meet CCDF requirements and were obligated in FY2018 or FY2019. 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. 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)). Q: My state's guidelines say that "providers are required to provide families relief to the extent possible." For example, charging less tuition to assist parents. 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). OCC will collect information about use of stabilization funds through the CCDF Plans. Therefore, providers participating in their ARP Act stabilization subgrant programs may terminate an employee for cause during the subgrant period. 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. The Child Care Stabilization Grant is the sole focus of these fiscal monitoring reviews. Section 103(d) of the American Taxpayer Relief Act amended the relevant statutory provision, 26 U.S.C. Attestation: You have attested, when open and providing services, to implement policies in line with guidance and orders from state and local authorities and to the greatest extent possible the Each approved program receives a Fixed Costs and Families Grant, based on . State SNAP agencies will have to determine on a case-by-case basis what portion, if any, is excludable based on how the providers received the funds and how they are spent. 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? Tribal Lead Agencies must complete the full construction/major renovation application process and receive ACF approval (45 CFR 98.84). 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. 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 . A: You report the grant as income. 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). However, child care providers are not required to provide relief from copayments and tuition for families in their care during the ARP Act stabilization subgrant period. As required at 45 CFR 98.60(d)(4)(ii),Visit disclaimer page if the lead agency does not have an applicable requirement, the regulation at 45 CFR 75.2Visit disclaimer page, Expenditures and Obligations, applies. 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. Programs in inactive status are not able to apply or recertify their stabilization grant while they are in inactive status, as only programs that are open to serve children are eligible for stabilization grants. Help is on the way! Thus, lead agencies should check their own laws and procedures to ensure that using funds for incentives is acceptable practice. If you would like to continue helping us improve Mass.gov, join our user panel to test new features for the site. Yes, the ARP Act requires lead agencies to make available on the lead agencys website an application for qualified child care providers (section 2202(d)(2)(D)(i)Visit disclaimer page. 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? Example 1: Provider pays herself the full amount. 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. 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 The amount you pay yourself has nothing to do with how many hours you work or when you work. During the fiscal monitoring review process, will other sources of funding be reviewed outside of the C3 Child Care Stabilization Grant (such as a PPE loan)? In cases where the income of families of essential workers exceeds the federal income eligibility limit of 85% of state median income (SMI), Lead Agencies may terminate CCDF subsidies funded by the CARES Act within the eligibility period without a waiver from ACFfor example, if the Lead Agency reverses their policy to disregard the income for essential workers or when CARES Act funds are depleted. Qualified child care providers must certify that they will meet the three certifications for the duration of their ARP Act stabilization subgrant. (45 CFR 75.2Visit disclaimer page). 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. 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. States and territories are restricted from using CCDF funds for major renovations but can use CCDF funds for minor renovations. Provider C receives a $3,500 grant and uses the money to pay for equipment that is used for both her business and her family (e.g., computer, television, furniture). The CCDF rule allows for copayments to be waived for families whose incomes are at or below the poverty level for a family of the same size, for children in protective services, or other criteria the Lead Agency establishes. 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. In those circumstances, the ARP funds would not affect an individuals annual income used to calculate the individuals portion of rent. 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. There are two payment options: If an organization has more than one Massachusetts location, am I eligible to receive more than one grant? A: Pay yourself first. Before the pandemic, there were approximately. In response to the COVID-19 public health emergency and its impact on the child care industry, President Biden signed the American Rescue Plan Act of 2021 (ARP Act). 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. The CCSG application is now closed. Child Care Relief Funds. Carefully tracking payments is an important and helpful way to help minimize compliance risks. Review the grant payments received using LEAD. Under 45 CFR 98.67(a), 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. 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. Building Equitable Early Childhood Systems, Early Care & Education Quality Initiatives, Harnessing Opportunities for Positive Early Childhood (HOPE), The True Cost of Providing Safe Child Care During the Coronavirus Pandemic, Help is on the way! The CCDF regulation at 45 CFR 98.20(a)(3)(ii) clarifies that the protective services category may include specific populations of vulnerable children as identified by the Lead Agency. State, Territory, and Tribal Lead Agencies have broad flexibility to operate the CCDF program and have a number of options within federal statute and regulation to adapt policies in order to maintain continuity of services for families affected by a disaster. This is not a loan. 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. 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. Regarding Federal taxation, please contact the Internal Revenue Service for guidance. Yes, additional child care staff or staff time to assist with cleaning and health screening is an allowable use under CCDBG as an activity to improve the quality of child care services and child safety (45 CFR 95.53(a)(10)). Personnel costs, including payroll and salaries or similar compensation for an employee (including any sole proprietor or independent contractor), employee benefits, premium pay, or costs for employee recruitment and retention. a Are TDOE regulated programs eligible to apply for funding? Q: Can I pay myself in one lump sum or do I have to pay myself weekly or biweekly? 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