The American Rescue Plan act’s Child Care Stabilization grants are finally on its way to a couple of states. Read on to find out whether yours is included and find out what you need to be eligible.
California Stabilization Stipend
Licensed family child care homes will receive a stabilization stipend of $3,500 while child care centers can receive anywhere from $3,500 up to $6,500 depending on the center’s capacity.
While the initial requirement for the stabilization grant was that a provider must have been open on or before June 25, 2021, California’s eligibility requirement says that even if you were temporarily closed or had an inactive status on June 25, 2021, you are still eligible for the stabilization stipend.
One drawback of this stipend however is that it will be treated as a taxable income. Another thing is that if you are considered as part of the Family, Friend or Neighbor (FFN) provider, you will not be eligible for the stipend.
If you are yet to apply for the stabilization stipend, you can start by learning more about it here.
Michigan Child Care Stabilization Grant
Licensed childcare providers in Michigan can apply for up to $1000 worth of bonuses for their full-time staff while part-time staff can receive $500.
The state will be releasing the funds starting January 10 and childcare providers are encouraged to apply. The grant will be given to child care centers, family homes and group homes, tribal-based child care and Head Start and Great Start Readiness Program (GSRP) programs as long as they are licensed.
There is no quota so all applicants who are eligible will receive a grant.
Click here to get more information about the application process.
Nebraska Child Care Stabilization Program
Nebraska opened its portal for childcare providers to apply for the Child Care Stabilization grant last October 25, 2021. A child care provider is eligible to receive the grant if they were licensed on or before March 11, 2021.
Get all your information about the stabilization grant application here.
They also have a calculator for how much subsidy you may be eligible for according to your license type. Try out their Award Estimator Calculator here.
The application period ends on November 24, 2021.
Florida Crisis Emergency Funding Assistance
While Florida has up to 5 phases of funding supporting early childhood education providers, it is also 1 of only 5 states which did not submit the required plan asked by the US Department of Education in order to receive $2.3 billion in funding from the American Rescue Plan act.
For childcare providers in Florida looking for grants, support, and subsidies as they try to overcome the COVID-19 crisis, you can apply for Crisis Emergency Funding Assistance. You can find more information about available funding and grants here.
Meanwhile, as to the delay of the plan submission, the Florida Department of Education spokesperson Jared Ochs said they are waiting for districts’ responses. This is so they will be able to allocate the funds according to the districts’ needs and have the plan reflect just that.
Other States
Since the American Rescue Plan Act was enacted last March 11, 2021, states have rolled out their own programs for the stabilization grant.
If your state hasn’t rolled out its own program application yet, you can find more information here.
Find your state’s stabilization grant program here.
Read more: Childcare Grants 101 for Family Daycare and Childcare Centers
Is the Stabilization Grant taxable?
While eligibility, requirements, and grant amounts will differ from state to state, the stabilization grant can be taxable. The IRS has stated that certain federal funding and grants received under the American Rescue Plan is generally considered taxable income. However, to be sure, you should consult your tax advisor to determine your status according to your business condition.
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