child care stabilization grant taxable

To prepare for an EEC fiscal monitoring review, you should consider: a. Documenting all expenditures made with grant funds by using the recommended Expenditure Tracker or a similar tool, that includes at a minimum: b. Distributing the funds to employees (most states require a portion of grant funds to be paid out to employees)? 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. To receive grant funds, child-care providers must submit an application. Lead Agencies have the flexibility to determine which children qualify as receiving or needing to receive protective services, and could include families affected by COVID-19 circumstances in that definition as a temporary, short-term measure. Can I still deduct them as expenses? 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 must continue to meet this requirement throughout the public health emergency. Federal law defines income for SNAP. 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. OCFS is prioritizing workforce support for child care staff by requiring that at least 75% or the Child Care Stabilization Grant 2.0 for Workforce Supports be spent on workforce support expenses. These payments count as a rebate or advance payment of a credit that are exempted as income. Q Im receiving this grant quarterly through April 2023. Tribes may also use CCDF for minor renovation without prior approval. Funds received prior to the date of closure may be used for approved expenses. Child Care Stabilization Base Grants will be available to all eligible providers on a monthly basis beginning September 2021. Now you are on the Dashboard page, scroll down to the Recertification Section. If so, follow up with your state to make sure they are following their own rules. 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. a Are TDOE regulated programs eligible to apply for funding? EEC can then help the provider determine whether any funds need to be returned. Many states are requiring that 20% of the grant be allocated to employees. associated with the licensed capacity of 50. The supplemental appropriations under the CARES Act and the CRRSA Act can be used to provide child care assistance to health care sector employees, emergency responders, sanitation workers. However, lead agencies do have flexibility in defining unlimited access, and we are deferring to lead agency interpretation, as long as it is recognizably reasonable to the average person, as to how to maintain this policy while balancing health and safety concerns related to the Coronavirus Disease 2019 (COVID-19) public health emergency. Q: Does the federal guidance for this grant require providers to gift any of it to parents? 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. Programs will be prompted (via email and in LEAD) to recertify the application on the first day of the month they are recertifying. 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. Obligation and liquidation information for regular CCDF funds is described in the instructions to the ACF-696 and ACF-696T CCDF expenditure reports. A lock icon ( EEC will notify programs in advance if a review at the program location will occur and whether the review will be conducted on-site or remotely. Get more information about KidKare. A policy that moves families currently receiving subsidies to a waitlist is in direct opposition to the graduated phase-out policy. Not all applications are guaranteed to be approved. Q: Are the Stabilization grant requirements the same from state to state as to what I can use the money for? Lead Agencies may interpret this provision (i.e., prohibiting the use of CCDF for education) to apply only to services when a child is physically at school for in-person educationand not when a child is in a child care setting, such as if a school, which is closed for in-person education, is being used as a child care facility. Subgrant amounts should reflect the significant resources included in the ARP ActVisit disclaimer page and be substantial enough to stabilize struggling child care providers. Before the pandemic, there were approximately. 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. The ARP Act does not impose requirements on whether to include or exclude ARP Act child care stabilization funds. Lead Agencies may also use CCDF quality dollars to provide temporary grants or assistance to impacted providers to retain the child care supply during periods of closures. Contribute to a SEP IRA or Roth IRA? As a reminder, CRRSA Act funds may be used to waive copays for all eligible families without a CCDF waiver. Section 658P(4) of the Act indicates that, for purposes of eligibility for CCDF subsidies, an eligible child includes a child who is receiving, or needs to receive, protective services (in addition to children of parents who are working or attending training/education). Child care programs may not decrease an hourly employees pay rate but are allowed to decrease the employees hours in a given week. We encourage family child care providers to contact their local SNAP officeVisit disclaimer page for more information. Below is an additional series of questions and answers about the Stabilization Grant. The CARES Act, the CRRSA Act, and section 2201 of the ARP Act allowed the supplemental funds to provide child care assistance to families of essential workers without regard to the income eligibility requirements, but made no mention of the asset test. 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. Programs that are awarded a grant will receive an IRS Tax Form 1099-NEC. Grant reporting will be completed in the Professional Development (PD) Registry. State tax rules apply. OCC recognizes that tribally operated centers may not need to submit an application to indicate their need for funds because the tribal CCDF program operates the center, but the tribal lead agency is still accountable for assurances about the supplantation requirements and ensuring that the funds are being used for allowable activities. Yes. This grant award increase will only be available to providers who previously received the COVID-19 Child Care Stabilization Grant at the end of 2021. As the incentives in question would be to promote vaccination among child care providers and support health and safety in child care programs, this would be an allowable use of CCDF quality funds. In addition, many of these individuals are working extended or irregular hours, and under stressful circumstances. The Recertification section will contain the list of all applications including - Funding Month, Fund Distribution Status, Projected Amount, and Due Date. For tax purposes, she should reserve a portion of the grant amount to go toward her taxes. Q: If I was audited, would they just audit my grant or my entire business? Therefore, lead agencies are strongly encouraged to use that discretion to disqualify child care providers who have had their license or ability to participate in the subsidy program revoked or who are under investigation. 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. Providers can use the funds to pay prior program expenses incurred after January 31, 2020. How many months of funding will a program receive? If the lead agency does not require school-age child care providers to complete safe sleep practices training to be eligible to serve children receiving CCDF subsidies, then school-age providers are not required to complete a safe sleep practices training in order to be eligible for ARP Act stabilization assistance. Yes, if you are a for-profit organization this funding is taxable. During the current public health emergency, these essential workers cannot work from home, and many of the regular child care arrangements for their children have closed. 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. Lead agencies were instructed to include a description of their stabilization grant implementation, including the link to the subgrant application on their website, how grants are awarded, any strategies used to target providers in low-income communities, how funds have been used by providers, and any impacts or results on providers (e.g., increased number of licensed child care programs open in underserved area) or child care staff (e.g., increased number of staff receiving higher wages) as a result of the stabilization grants. This program doesnt just impact parents and childcare providers either. OCC has no plans to mandate specific oversight or compliance measures on this policy. Q: Can I use the Stabilization grant for: Pay my employees life insurance premiums? A: It will depend on your personal finances. Q: I gifted some of the grant back to parents because of COVID. 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. The CCSG application is now closed. 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. 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