What is the deadline to spend grant funds?
DHS/DFD recognizes child care providers are still dealing with the aftermath of COVID-19 and may need to use ARP Stabilization Grant funds for operational expenses beyond August 31, 2023. DHS/DFD is authorizing providers to cover approved operating expenses through December 31, 2023 to support continuous operations. This means providers can charge operational expenses beyond August 31, 2023 and use ARP Stabilization Grants, consistent with the purpose of the stabilization grant across the six categories; such as: personnel costs, rent, utilities, and insurance, facility maintenance and improvements, personal protective equipment, cleaning, and other health and safety practices, equipment and supplies, goods and services, and mental health supports.
Am I required to repay or return funds if my program closes after receiving funding?
Yes. If a program closes during the grant period (December 2021 through December 2023) the provider will be required to return grant funds.
Are child care stabilization grants taxable?
The American Rescue Plan Act does not exempt child care stabilization grant funding from taxation. State tax rules apply. Regarding federal tax rules, please visit the Internal Revenue Service website for guidance.
Can grant funds be used entirely on payroll?
Funds may be used toward personnel expenses, such as salary, wages, payroll and benefits of child care center staff employed at the facility location for which the grant was awarded. A separate Recertification Questionnaire must be completed for each facility. All supporting documents must be on file to support approved spending. NOTE: 50% of the additional funding amount must be used for increased staff wages, bonuses and/or increased staff benefits (must not substitute for or supplant a staff member’s regular wages/benefits).
What personnel costs can I use ARP Stabilization grants for?
Wages and benefits for child care program personnel, including increases in compensation for any staff in a child care center or family child care providers and their employees; health, dental, and vision insurance; scholarships; paid sick or family leave; and retirement contributions. Other examples of allowable personnel costs include ongoing professional development or training, premium or hazard pay, staff bonuses, and employee transportation costs to or from work.
Can grant funds be used to pay staff wages while staff are attending professional development?
Yes. Personnel and professional development-related expenses are approved uses of ARP Stabilization Grant funds. NOTE: 50% of the additional funding amount must be used for increased staff wages, bonuses and/or increased staff benefits (must not substitute for or supplant a staff member’s regular wages/benefits).
Can grant funds be used for capital improvements?
No. ARP Stabilization Grant funds may only be used for minor improvements. NOTE: 50% of the additional funding amount must be used for increased staff wages, bonuses and/or increased staff benefits (must not substitute for or supplant a staff member’s regular wages/benefits).
The Economic Development Authority (EDA) has announced nearly $15 million in grants of up to $200,000 to licensed child care centers in New Jersey to cover the costs of facility improvements. Please visit the NJEDA website for more information.
Can grant funds be used to pay contractors for expenses (i.e. plumber, electrician, etc.) to make repairs in the facility?
Grant funds may be used to pay for minor repairs to the facility. Grant funds may not be used for facility improvements defined as capital improvements. NOTE: 50% of the additional funding amount must be used for increased staff wages, bonuses and/or increased staff benefits (must not substitute for or supplant a staff member’s regular wages/benefits).
Can grant funds be used to install a CCTV or other type of security system in the facility?
Equipment to maintain operation and related to child care operational cost are approved expenses. NOTE: 50% of the additional funding amount must be used for increased staff wages, bonuses and/or increased staff benefits (must not substitute for or supplant a staff member’s regular wages/benefits).
Can grant funds be used to pay property taxes?
Funds may be used for wages and benefits, insurance, rent, mortgage, utilities, cleaning and sanitizing, professional development related to health and safety, mental health services, and other operational expenses to remain open and operating. Funds may be used for either past (September 2021) or planned purchases or expenses. NOTE: 50% of the additional funding amount must be used for increased staff wages, bonuses and/or increased staff benefits (must not substitute for or supplant a staff member’s regular wages/benefits).
Can a family child care provider use grant funds to pay condo or HOA fees?
HOA and insurance fees fall under mortgage and rent expenses category, which are allowable. NOTE: 50% of the additional funding amount must be used for increased staff wages, bonuses and/or increased staff benefits (must not substitute for or supplant a staff member’s regular wages/benefits).
As a family child care provider I do not have an assistant and/or alternate. Do I have to direct 50% of the additional funding amount to my substitute even if I rarely or never use the substitute?
You must set aside 50% of the additional funding amount for personnel expenses if you operate 24 hours a day or if an alternate or substitute is used before December 31, 2023.
We've had to close due to exposures in the past, in doing so we have not charged or reimbursed parents that pay privately. Is that something that can be included?
Using ARP Stabilization Grant funds for parents’ fees and costs is an approved expense from September 2021 to December 2023. NOTE: 50% of the additional funding amount must be used for increased staff wages, bonuses and/or increased staff benefits (must not substitute for or supplant a staff member’s regular wages/benefits).
Can we submit receipts for mental health services that will be provided in the future if they are already billed?
Yes, if they fall within the ARP-covered time frame of September 2021 to December 2023.
Will I need to maintain documentation and receipts detailing how I used the grant funds?
Yes. You must keep a record of all receipts/invoices for items or services purchased with grant funds. Your business, center or home may be subject at any time to monitoring and/or audit to determine whether the grant funds are being spent properly and according to the provisions set forth herein. By spending grant funds, you hereby agree to permit, DHS/DFD, the State of New Jersey, and/or the federal government to audit your business, center or home and agree to cooperate to the fullest extent possible.