Child Care Stabilization Base Grants FAQs (concluded)

Child care program types eligible for funds include: 

• Family and group family licensed under Minnesota Rules, Chapter 9502 
• Child care centers licensed under Minnesota Rules, Chapter 9503 
• Certified license-exempt child care centers under Minnesota Statutes, Chapter 245H 
• Tribally licensed child care programs
• Legal non-licensed providers who are authorized by the Child Care Assistance Program under Minnesota Statutes, Chapter 119B.125 and serving eligible families under Minnesota Statutes, Chapter 119B (eligible to apply for base grant funding only).

In addition, the above eligible programs must be licensed, certified or registered and in good standing throughout the funding period with the Minnesota Department of Human Services (under Minnesota Rules, Chapters 9502, 9503, 245H or 119B) or their tribe. This means the program must not have been:

• The subject of a current or past finding of fraud
• Prohibited from receiving public funds under Minnesota Statutes, Section 245.095
• Under revocation or under temporary immediate suspension.

To receive these funds, an eligible program, as described above, must have been operating and serving children for at least a portion of the funding period. Temporary closures including seasonal closures for summer-only and school year-only programs are allowable; however, programs that permanently close during the funding period are ineligible. 

Yes, legal non-licensed providers who are currently registered with the Child Care Assistance Program and serving children who are eligible for the program are eligible to apply for a Child Care Stabilization Base Grant.

Online applications will be available to all eligible providers on a monthly basis. Eligible providers will receive an email at the start of each application period with a link to a personalized application link.

Providers can apply monthly for Base Grants. All application periods close at 4 p.m. on the last day of the application period. 

Funding periods from September 2021 – June 2022 can be found on the Base Grants main page, under the Application process heading. 

• If the submit button in your application doesn’t work, go back and make sure you answered all the questions and all information is entered in the correct format (look for red text). These issues must be resolved before you can submit your application. 
  • Once you’ve successfully submitted your application, you will be redirected to a “Thank You” webpage AND you will receive a confirmation email.
  • If you do not receive this confirmation email, your application was NOT submitted. 
• Try to submit your application using a different web browser (Google Chrome, Firefox, Microsoft Edge, etc.).
• Try to submit your application using  a different device. Applications can be submitted from a computer, a smart phone, or a tablet.
• Try to submit your application with a different internet connection (office, home, cellphone data connection, etc.). 

The Department of Human Services only processes the last application submitted by a provider after an application period closes.

State statute requires base grant amounts to be determined based on the number of full-time equivalent staff who regularly care for children in the program, including sole proprietors (i.e. family child care providers) or independent contractors. "Regularly cares for children" is defined as a paid staff person whose job description or responsibilities include interacting with, caring for and supervising children enrolled in the program. More information on the funding formula is available under Base Grant amounts section on the Child Care Stabilization Base Grants page.

Providers who have recently received payments through the Child Care Assistance Program, Early Learning Scholarships, or both will receive a 10% increase to their Base Grant per funding period. The department will determine eligibility for the 10% increase based on payment records for the Child Care Assistance Program and the Early Learning Scholarship program during the following timeframes for each funding period. The department will determine eligibility for the 10% increase based on payment records for the Child Care Assistance Program and the Early Learning Scholarship program, please see the Application Timeline table on the Base Grant webpage for 10% bonus lookback periods.

Yes, providers who receive Child Care Assistance Program payments are eligible for these funds.

Yes, providers who receive Early Learning Scholarships are eligible for these funds.

Yes. However, providers accepting these funds must ensure the funds are not used to pay for any allowable use that has already been paid for with other federal, state, tribal or local public funds. Examples of other funding sources may include Peacetime Emergency Child Care grants, COVID-19 Public Health Support Funds for Child Care, Tribal Child Care Stabilization Grant funds, forgiven Paycheck Protection Program loans, Child Care Aware Regional Grants, and others.

Programs are required to use 70% of the Base Grant funds to increase compensation for staff who regularly care for children in their program. Compensation increases only count toward the requirement if they are provided after the first day of the funding period for which they first receive a base grant.

Programs are allowed to use the remaining 30% of Base Grant funds as reimbursement for any of the approved uses listed in question 4.13. These expenses must be incurred  between Jan. 30, 2020, and Sept. 30, 2023. Providers accepting these funds must ensure the funds are not used to pay for any allowable use that has already been paid for with other federal, state, tribal or local public funds. If you are uncertain whether the source of funding from other support programs is public, you should verify with the organization that provided that support.

Yes. Providers wishing to decline the funds are encouraged to indicate this by answering the initial questions in their personalized application link. This will assist the department in budgeting and planning for the Child Care Stabilization Base Grant program, and will reduce the number of email reminders you receive. Choosing to decline funds one month will not affect your ability to apply for future funding periods.

The CFDA number assigned to funds received in 2021 and 2022 is 93.575. 

The UFARS Finance Code - used by school districts to report to the Minnesota Department of Education for funds received in 2021 and 2022 – is 699

The Base Grant is calculated based on the number of full-time equivalent (FTE) staff who regularly care for children in the program. The monthly application will require you to list the individuals, full and part time, and the hours worked caring for children during the previous calendar month. Based on that information, the exact FTE amount for each individual and the total number of FTEs for the program will be automatically calculated as part of the application. A Child Care Stabilization Grant FTE worksheet (Excel); was developed to assist you in gathering the needed information. The worksheet is for your information and is not part of the official application process. Providers are not required to use the FTE worksheet.

Child care centers and certified child care centers

• Only list paid staff who regularly care for children.
• Do not include:
  • Volunteers
  • Individuals paid to provide occasional enrichment activities for the children. 
• Be prepared to supply documentation that supports the information provided in the application regarding staff and hours worked, if requested by the Minnesota Department of Human Services.

Family child care providers

• A family child care provider is considered a “staff member” when calculating the FTEs for the purposes of the Base Grants. The provider will be asked to list the hours they worked, directly caring for children during the previous calendar month, in the application.  
• If a spouse also works in the family child care program, has met licensing qualifications, and regularly cares for children, list that individual and the hours worked directly caring for children in the application.
• A provider’s child, age 13-17 years, who has met the qualifications to be a designated helper and assists in caring for children in the program, may be included in the FTE calculation.
• List any individual who you pay to regularly care for children in your program.
• Do not include in the FTE calculation:
  • Individuals paid to provide occasional enrichment activities for the children
  • Individuals, outside the household, who are not paid; they are considered volunteers.
  • Any hours worked not directly caring for children
• Be prepared to supply documentation that supports the information provided in the application regarding individuals and hours worked if requested by the Minnesota Department of Human Services.

FTEs are calculated on the number of hours staff regularly cared for children in the previous calendar month.

Yes, the hours for a substitute or temporary staff who directly cares for children may be included in the FTE calculation.

No, the application is collecting only the hours worked caring for children during the time period listed.  If a staff member is on paid time off/paid leave and not working, those hours should not be included.

Providers can use Child Care Stabilization Grant Program funds to pay for payroll taxes. For the 70% of Base Grants required to be used for increased compensation, payroll taxes associated with compensation increases funded by this grant are an allowable use.  

For the remaining 30% of Base Grant funds available for additional uses, this portion of the Base Grants can also be used for payroll taxes. (See also Question 4.13). Grant funds cannot be used to pay any other type of taxes.

No, providers are not required to provide tuition or copayment relief to families if they accept Child Care Stabilization Base Grant funds.

State law and Section 2202 (d)(2)(D)(i)(I) of the American Rescue Plan Act of 2021 require child care provider grant applicants to “implement policies in line with guidance from the corresponding State, Tribal, and local authorities, and in accordance with State, Tribal, and local orders, and, to the greatest extent possible, implement policies in line with guidance from the Centers for Disease Control and Prevention.”

If a child care provider determines it is not possible to implement Centers for Disease Control and Prevention (CDC) masking guidance, then they are not required to have all children ages 2 and up wear masks in order to be eligible for Child Care Stabilization Financial Hardship Grants.  It remains the child care provider’s responsibility to determine what CDC guidance, including guidance on masking, is possible to implement. The Minnesota Department of Health Masking Recommendations for Child Care: COVID-19 recommends child care providers follow CDC: COVID-19 Guidance for Operating Early Care and Education/Child Care Programs. As such, child care providers are required to implement policies that align with Minnesota Department of Health (MDH) and CDC masking recommendations to the greatest extent possible. 

 

State law and Section 2202 (d)(2)(D)(i)(I) of the American Rescue Plan Act of 2021 require child care provider grant applicants to “implement policies in line with guidance from the corresponding State, Tribal, and local authorities, and in accordance with State, Tribal, and local orders, and, to the greatest extent possible, implement policies in line with guidance from the Centers for Disease Control and Prevention.”  See below for information on specific policies:

• All licensed child care providers, including those receiving a Child Care Stabilization Base Grant are still required to: (1) report COVID-19 cases to the Minnesota Department of Health (MDH), (2) inform families of COVID-19 exposures, and (3) isolate children and staff who test positive for COVID-19 based on MDH guidance. 
  • The January 11, 2022 DHS notice of COVID-19 Licensing Requirements confirmed that these three licensing requirements remain in effect and that the Department of Human Services will focus its enforcement on compliance with these three requirements.
• Effective January 11, 2022, child care providers are no longer required to quarantine children and staff who are close contacts with a positive COVID-19 case as part of licensing requirements. 

Eligible providers must attest in writing to: 

• Having been open and serving children during the funding period.
• Implement policies in line with guidance and orders from corresponding state, tribal, and local authorities and, to the greatest extent possible, implement policies in line with guidance from the Centers for Disease Control and Prevention Guidance for Operating Early Care and Education Programs 
• Pay staff at least the same amount in weekly wages and maintain the same benefits (such as health insurance and retirement, if applicable) 
• Use at least 70% of the Base Grant to provide increased compensation, benefits, or premium pay to all paid employees, sole proprietors (i.e. a family child care provider), or independent contractors who regularly care for children, unless granted a waiver from the department. For details see questions 4.8 and 4.9. 
• Provide relief from co-payments and tuition payments for the families enrolled in the provider’s program, to the extent possible, and prioritize such relief for families struggling to make either type of payment
• Report program capacity information through the Provider Business Update tool at Child Care Aware at least every six weeks. (Legal non-license providers are exempt from this requirement.)

Child care providers must agree not to:

• Furlough or lay off employees 
• Use these funds to pay taxes, with the exception of payroll taxes
• Use these funds for items that have already been paid for by federal, state, tribal or local public funds.

Grant recipients may request a waiver from the requirement to use 70% of the Base Grant to provide increased compensation, benefits or premium pay to all staff who regularly care for children if they cannot do so due to restrictions included in agreements with employee bargaining units, such as a union contract, or because the program is experiencing unusual and significant financial hardship. Programs needing to request a waiver will be able to do so through the application process.

Based on state statute there are two allowable reasons for a waiver: 

• A contract with an employee bargaining unit (for example a union contract) that prohibits increased compensation for employees of your program. 
• Financial Hardship. If the program is experiencing financial hardship, they will be asked to provide information about their financial situation in order to determine if their situation qualifies for the waiver.  In order to qualify, a provider must have an operating loss (revenue – expenses), for the previous calendar month, larger than the Base Grant payment they would be eligible to receive based on the number of FTEs reported.

Hiring new permanent employees does not count towards providing increased compensation, benefits or premium pay to paid employees regularly caring for children.  The state law expects staff regularly caring for children will receive an increase above their base compensation and/or benefits from the beginning of the first grant funding period a program is awarded a Base Grant.

No, the requirement to use 70% of Base Grant funds is for increasing compensation of staff who regularly care for children.  It is an allowable use of the remaining 30% of Base Grant funding to increase compensation for staff in the child care program that do not regularly care for children.

Hiring new permanent employees does not count towards providing increased compensation, benefits or premium pay to paid employees regularly caring for children.  The state law expects staff regularly caring for children will receive an increase above their base compensation and/or benefits from the beginning of the first grant funding period a program is awarded a Base Grant.

Child care providers must agree to use the funds for one or more of the following purposes:  

• Personnel costs (including payroll taxes), benefits, premium pay, and employee recruitment and retention for an employee (someone who owns their own business, like a sole proprietor or an independent contractor, can count themselves as an employee) 
• Rent or mortgage payments, utilities, facilities maintenance and improvements, or insurance 
• Personal protective equipment, cleaning and sanitation supplies and services, or training 
• Professional development related to health and safety practices
• Purchases of or updates to equipment and supplies to respond to COVID-19 
• Goods and services necessary to maintain or resume child care services 
• Mental health supports for children and employees 

Programs are allowed to use the 30% of Base Grant funds for reimbursements for any of the uses above, paid between Jan. 31, 2020, and Sept. 30, 2023, that have not been covered by other federal, state, tribal or local public funds. For One-Time Supplemental Stabilization Grants, the full grant award can be used for any of the uses above, paid between March 3, 2021, and Sept. 30, 2023, that have not been covered by other federal, state, tribal or local public funds. If you are uncertain whether the source of funding from other support programs is public, you should verify with the organization that provided that support.

Access the Update Tool through the Parent Aware log-in. It allows you to update your program’s capacity. If you have never used the Update Tool before, please refer to these instructions for using the Update Tool. If you need further assistance, email updatetool@parentaware.org. Plan to complete this survey, at a minimum, once every six weeks to ensure that the data remains current. 

Data from the Update Tool is used to update the map and survey data that are shared publicly through Parent Aware. This information helps parents of young children get connected to your program when they are looking for child care. 

Note: Legal non-licensed providers are exempt from this requirement. 

Minnesota Management and Budget, a state agency, will mail monthly payments to the authorized agent, center operator, license holder, or legal non-licensed provider at the address on file with the Minnesota Department of Human Services, Licensing Division.

Please note, these payments cannot be forwarded by the postal service and will be returned to Minnesota Management and Budget if your address on file with DHS Licensing Division or your Child Care Assistance Program Agency is not current, which will delay you receiving your payment. All address changes need to be made by your county licensor (family child care providers), tribal licensor, or Minnesota Department of Human Services licensor (child care centers and certified child care centers). Legal non-licensed providers should contact their Child Care Assistance Program agency.

No, programs are not required to submit proof of how the funds were spent, unless specifically requested.  Programs are required to document spending and be prepared to share those records should the Minnesota Department of Human Services request them. The department will conduct compliance monitoring by utilizing a sample audit approach. Providers selected for an audit must provide the department with documentation related to eligibility and use of funding. 

Providers should contact their Minnesota Department of Human Services or county licensor as soon as the change occurs and ask them to update the information. Legal non-licensed providers should contact their Child Care Assistance Program agency. Additionally, if a program is contemplating operating status changes (i.e. moving from school year only to full year operations) that may affect their eligibility, they should refer to questions 1.1, 4.1, 4.2, 4.5 and 4.6.

Those with additional questions or who are contemplating other changes that may affect their eligibility for funding should contact the Minnesota Department of Human Services by email to determine impacts.

Providers who move during the funding period remain eligible for the funds as long as they continue to meet funding criteria. Providers are permitted to be closed for up to 14 calendar days while they move business locations, this includes family child care providers moving between counties and thus opening new licenses. 

If a move exceeds the allowable time, the provider will not be eligible to receive that month’s funding payment. Providers planning to move during the funding period should work closely with their Minnesota Department of Human Services or county licensor to ensure the move does not impact funding eligibility. Legal non-licensed providers should contact their Child Care Assistance Program agency.

For assistance, please contact Cindy Schneider, Minnesota Department of Human Services Child Care Services Division, at dhs.child.care@state.mn.us (preferred) or 651-431-3864. Please include your license ID, certification number, or registration number in all communications. Providers should expect to receive their funds within three weeks of the application close date. For application periods, refer to question 1.4.

The Internal Revenue Service requires the Minnesota Department of Human Services to obtain your Social Security number or Federal Employer Identification Number in order to issue a Tax Form 1099-G. The name and number you give must match your name with the IRS. If your name and tax identification number are determined to not be valid due to a fraudulent act, you will not receive Child Care Stabilization Grant funds, you will have to pay back any of the funds you have been paid, and you may be subject to an IRS fine.

Yes, the IRS and Minnesota Department of Revenue considers this funding as income. Providers who receive these funds will be mailed a 1099 form by Jan. 31, 2022, showing how much was paid to the provider in 2021. Providers are encouraged to consult with an accountant or tax expert to fully understand the tax implications of this funding. By the second week of February 2022, if you haven’t received your 1099 tax form, you can contact the Minnesota Management and Budget’s 1099 help line at 651-201-8201 or email W9-1099.MMB@state.mn.us to request a copy. Minnesota Management and Budget will provide a copy of the 1099 tax form through secure email, ZIXmail.  

If providers have questions after receiving their 1099 form, they can contact Minnesota Management and Budget at 651-201-8201. First Children’s Finance, a Minnesota-based nonprofit, may be able to provide overall budgeting and financial planning for any tax liability, as well. Email to infoMN@firstchildrensfinance.org or call 1-866-562-6801.

No, the department will not be publishing the grant recipients or the data they provide as part of the application.

Most funding application data is classified as public data, and if requested, must be made available to the person requesting it. Examples of private data that cannot be shared with the public are an individual’s Social Security number, and data that can potentially identify children in programs. If you have data-related inquiries, please contact the Minnesota Department of Human Services Child Care Services Division by sending an email to dhs.child.care@state.mn.us.

If there is indication that a provider has failed to meet Child Care Stabilization Base Grant requirements, they will receive written notice and have an opportunity to clarify and/or correct any non-compliance. Failure to make the required corrections, and/or indication that a provider provided false or misleading information to the Minnesota Department of Human Services with regard to the funding requirements, may result in discontinuation of future eligibility for grant funds, recoupment of payments already made, and/or referral to the Office of Inspector General for additional action.

These funds do not constitute a loan and child care providers who comply with funding requirements will not be required to pay them back. However, funding recipients found to have violated the terms of the application process or attestation, or who are found to have provided false or misleading information to the Minnesota Department of Human Services with regard to funding requirements, may have prior payments recouped, be deemed ineligible for future grant funds, and/or be referred to the Office of Inspector General for additional action.  

Actions to establish recoupment, except for findings of fraud, must be made within six years of the conclusion of the grant program (currently set to end June 2023). Once recoupment is established, collection may continue until funds are repaid in full.  

If you are concerned that a grant recipient is not following the funding requirements, you can submit a report by calling 651-431-3968 or 800-627-9977 or emailing dhs.oig.ccaptips@state.mn.us with “Child Care Stabilization Grant Program Complaint” in the subject line. Include as much detail as you can, including:

• Child care provider or program name 
• Name of director if it’s a child care center
• Address of child care provider or program
• If licensed, the license number (which can be found at Licensing Lookup)
• The requirement you believe the child care provider may not be following
• A description of the way in which the child care provider is not following the requirement.

• Child Care Stabilization Transition Grants (June and July 2021)
• One-Time Supplemental Stabilization Grants (January 2022)
• Child Care Stabilization Base Grants (September 2021 through June 2023)
• Child Care Stabilization Financial Hardship Grants (Active January 2022)
• Any expansions or extensions of the Child Care Stabilization Grant Program

The department is required by federal law as part of the Child Care Development Block Grant, and the American Rescue Plan Act Stabilization funds that are a part of the Block Grant, to create plans that show strong internal controls and accountability for these public funds. Specifically, “Lead Agencies must ensure the integrity of the use of funds through sound fiscal management and must ensure that financial practices are in place (98.68 (a)(1))”.

Child Care Stabilization Grant recipients identified for an audit will receive a Request for Records by email using the email address provided in the grant application.   The provider will have fourteen (14) calendar days to submit records via email, fax, or U.S. Mail.  If the auditor has questions about the records or needs additional information, they will contact the provider via phone or email to discuss the review.

• Attendance Records or Affidavit from parent/guardian regarding a child’s attendance
• Billing Records and/or Payment Records
• Payroll records or Employee time-cards
• Copies of health and safety policy/guidelines implemented
• Payroll records – prior to grant and after
• Payroll records of bonus or premium pay
• Child Care business financial records 
• List of expenses and corresponding receipts

Please call Child Care Aware at 651-290-9704 or email supportfunds@childcareawaremn.org. .

You should add dhs.child.care@state.mn.us to your email client safe-sender list. Adding this email address ahead of time will prevent important emails from being filtered to your spam or junk folder. Follow these Constant Contact instructions for adding an email address to your safe-sender list.