Child Care Stabilization Grant
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This section includes information about income provided by Child Care Stabilization Grant payments.
Policy
Child Care Stabilization Grant (CCSG) payments are federally funded assistance payments for childcare providers. CCSG payments are countable and are considered self-employment income.
Countable income is used to determine an income budget. (See Income Budgeting to see how FAA determines the income budget.) FAA needs to know about income that is both countable and not countable to determine whether a budgetary unit’s expenses are exceeding their income. (See Income Eligibility for more information about how FAA uses countable and not countable income.)
The American Rescue Plan Act (ARPA) 2021 authorized relief funding to Arizona recipients through the Child Care and Development Fund (CCDF).
Eligible recipients of the CCSG include any of the following:
●DES Non-Certified Relative Providers
●DES Family Child Care Providers (including in-home providers)
●DHS Licensed Centers
●Tribal Child Care Providers
●Military Child Care Providers
Grant awards are issued monthly in flat grant payments based on the number of children being cared for. Eligible childcare providers began receiving CCSG payments in 08/2021 and are authorized to continue through 06/2023. Eligible childcare providers have until 09/30/2023 to spend the grant funds.
CCSG payments are not-countable self-employment income when the funds are used to pay any of the following business-related expenses:
●Personnel costs
●Recruitment and retention costs
●Rent, mortgage, utilities, and insurance payments of the business
●Facility maintenance and improvements
●COVID-19 related expenses, including personal protective equipment and cleaning supplies
●Equipment and supplies to respond to COVID-19
●Goods and services necessary to maintain or resume childcare services
●Mental health support for children and employees
●Health and safety training for staff
CCSG payments are countable self-employment income when any of the following occurs:
●The funds are used to pay for daily living expenses such as rent or mortgage.
●The amount of the funds received exceeds the amount of the actual expenses incurred. The excess amount is countable income.
Verification
The participant has the primary responsibility for providing verification. (See Participant Responsibilities – Providing Verification for additional policy.)
For NA, all of the following income is required to be verified before eligibility is determined:
●Reported on a new application, during the interview of a new application, or changes reported before the eligibility determination of a new application.
●Changes after an eligibility determination of a new application (e.g., a renewal application, mid approval contact, etc.) and any of the following apply:
The source of the income has changed.
The income is questionable(g) or unclear(g).
The reported income amount has changed by $51 or more.
The previous verification in the case file is more than 59 calendar days old.
For CA, all income is required to be verified before determining eligibility.
Self-employed participants may be eligible for a 40% expense deduction from income. To be eligible for the 40% Self-Employment Expense Deduction, only one allowable expense needs to be verified. When self-employment expenses are not verified using the verification process, eligibility is determined without those expenses.
Examples of verification that can be used for Child Care Stabilization Grant (CCSG) payments include, and are not limited to, any of the following:
●Assistance payments records
●Benefit award letters from SSA, Statement of Earnings VA, and other agencies
●Bank records
●Current check reflecting gross income
●Federal or state tax forms
●Contracts
●Signed statement from the agency or payer providing the income
●Bookkeeping records
●Business ledgers listing income amounts received and expenses incurred
●Actual receipts
●Contracts for work
●Statements from patrons and companies
●Most recent Internal Revenue Service (IRS) U.S. Individual Income Tax Return (1040) form. Below are common IRS Schedule forms that the participant may provide in addition to the 1040:
Schedule C, Profit or Loss From Business
Schedule E, Supplemental Income and Loss
Schedule F, Profit or Loss from Farming
Schedules B-1, C, D, K, K-1, K-2, K-3, and M-3 of IRS U.S. Return of Partnership Income (1065) form (See Limited Liability Company (LLC) Definition for more information about LLCs.)
NOTE The most recent IRS 1040 and Schedule forms are can be used as verification of self-employment income and expenses when the participant indicates it accurately reflects the participant's current income.
●Rent or mortgage receipt for business property
●Property tax statements for business property
●Utility costs for business property
●Cleaning cost bills for business property
●Business location and equipment maintenance
●Personal records indicating personnel salaries or costs of outside labor, such as canceled checks and payroll checks
●Participant’s statement for self-employment income, when one of the following apply:
Other attempts to obtain verification have failed.
Obtaining documented or collateral contact verification may cause harm or undue hardship(g) for the participant.
NOTE Participant statement verification may be used to verify self-employment expenses. Verify self-employment expenses when questionable.
Legal Authorities
Public Law 117-2
last revised 10/02/2023