Child care program types eligible for funds include:
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:
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.
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.
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. 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.
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
Family child care providers
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:
Eligible providers must attest in writing to:
Child care providers must agree not to:
Based on state statute there are two allowable reasons for a waiver:
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 firstname.lastname@example.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 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.
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.
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 email@example.com with “Child Care Stabilization Grant Program Complaint” in the subject line. Include as much detail as you can, including:
Please call Child Care Aware at 651-290-9704 or email firstname.lastname@example.org. .