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COVID-19 Child Care Stabilization Grants

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The Child Care Stabilization Grant application window is closed.

Below you will find information about the spring 2022 stabilization grant award increase. Further down the page, you will find the original FAQs and information on how to manage your grant.

Spring 2022 Grant Award Increase

GRANT AWARD INCREASE FAQ

I am a new child care or I missed the application deadline for the Child Care Stabilization Grant. Can I receive these additional funds?

No, the grant application closed on December 31, 2021 and new applications are not being accepted.

Why does ELD have additional funds available?

In budgeting for the COVID-19 Child Care Stabilization Grant, ELD wanted to ensure that all eligible child care programs would receive a maximum amount of funds for the type of child care services provided. This was determined while ELD accepted and processed the applications on a rolling basis. Now that the Grant application process is closed and all applications have been reviewed, ELD has a portion of Grant Funds remaining to distribute.

Why isn’t there a new application process for additional funds?

ELD has determined that providing additional funds to the approved Stabilization Grant applicants is the most effective and efficient way to protect and benefit the child care market.

Do I need to compete to receive additional funds?

Additional funding is available to all Stabilization Grant recipients who remain open to provide child care services. If you sign your updated grant by the 30-day deadline and continue to meet the requirements of the grant, you will receive additional payment of funds.

Do I need to take action to accept or reject these funds? What if I do nothing?

You must sign your updated grant within 30 days of the date you received it or it will expire. If you do not wish to accept additional funding, you may reject it using the “Decline to Sign” option in the DocuSign menu (see image).

What updates are being made to my Grant by this amendment?

Among other things, the updated Grant extends the performance period and increases the Grant amount. Please see Grant Amendment Sample for details.

What can these additional Grant Funds be used for?

The additional Grant Funds may only be used for costs related to COVID-19. Please see “Allowable Expenses” on page 6 of your updated grant.

How long will it take for the third payment to arrive?

The extended duration of the Grant is nine months. You must sign your updated grant within 30 days of the date you received it. A third and final payment will be made no later than the seventh month from the start date of the Grant.

I experienced a temporary COVID-19 closure after receiving the Stabilization grant. Does the closure impact my eligibility for the third payment?

Temporary closures due to COVID-19 are allowed and would not negatively impact a payment unless the child care closes permanently. You must notify the ELD in writing of any temporary or permanent closures immediately.

Do I have to stay open until the new end date of the Grant?

Yes. You must remain open to accept additional funding. The updated grant increases the award amount by approximately 25% and extends the period of the Grant by three months.

Do I have to continue to meet all of the requirements of the Grant to receive additional funds?

Yes, you are receiving an updated agreement for additional funds and a time extension with all of the Grant requirements remaining in effect.

When do these funds have to be spent?

The Grant Funds must be spent by the end date of the Grant. Please see “Effective Date and Duration” section on page 1 of your updated grant.

Do I need to send another W-9?

No. If there are no changes in name, business name, address, social security number, or employer identification number since the Stabilization Grant was issued to your child care, you do not need to submit another W-9.

Can I make a change to my application to request an increase in bonuses based on the types of child care services I am currently providing?

No, we must use the information provided by child cares in their applications submitted by the December 31, 2021 deadline to determine additional funding. Reopening applications for updates would delay distributing these funds.

DOCUMENTATION REQUIREMENTS FAQ

What documents do I need to keep for auditing purposes?

For audits, documentation may include:

  • Child care records and supporting documentation related to your application.
  • Documentation to verify attendance of children and/or hours of care provided.
  • Expenditure records and supporting documentation related to costs incurred and how Grant Funds were spent, including but not limited to:
    • Mortgage/rent/space cost statements;
    • Utility statements;
    • Payroll and benefits records;
    • Original invoices and/or receipts for purchases of materials/supplies; and
    • Documentation of other benefits provided to child care staff members, such as coverage of insurance costs or tuition reimbursement.

The federal Office of Child Care has resources available to assist you in tracking expenses. You can also contact your local Child Care Resource and Referral (CCR&R) agency for assistance.

How do I document that I am meeting the requirements of the Grant?

First, you must take the time to read and understand all requirements referenced in your Grant. Failure to meet Grant requirements may result in return of payments already made to you and discontinuation of future grants. It is important for you to document all activities related to meeting the requirements of the Grant for auditing purposes.

Please see the Family Child Care Budget Guide and the Child Care Center Budget Guide for more tracking and documenting assistance.

The federal Office of Child Care has resources available to assist you in tracking expenses. You can also contact your local Child Care Resource and Referral (CCR&R) agency for assistance.

How many years do I need to keep my documentation?

The Grant requires records to be kept for a minimum of six years, please see “Section 5. Records Maintenance and Access” on page 1 in the sample Grant on the ELD website.

How do I get a Taxpayer Identification Number (TIN) for the W-9?

For individuals, TIN is generally your social security number. For businesses that have employees, TIN is the IRS-issued Employer Identification Number.

Please visit the IRS website https://www.irs.gov/businesses/small-businesses-self-employed/employer-id-numbers for more information about employer ID numbers.

What if I have to close my child care after I receive my Grant?

If your child care closes before the expiration of your Grant, you must return funds as directed by ELD. Please see “Section 9. Withholding Funds, Recovery” on page 2 and “Exhibit A, Disbursement” on page 6 of the sample Grant.

What if I move during the Grant period?

Please see “Requirements” on page 5 of the sample Grant on the ELD website.

Do you have a question that’s not answered in our FAQs? 

Please direct questions to ECCgrants@ode.oregon.gov or 971-707-2029 (8 a.m. to 5 p.m. Pacific Time, Monday through Friday). Frequently Asked Questions will be updated on this page.

This grant award increase will only be available to providers who previously received the COVID-19 Child Care Stabilization Grant at the end of 2021. ELD is not accepting new applications.

Grant Resources

Please see the Family Child Care Budget Guide and the Child Care Center Budget Guide for more tracking and documenting assistance.

  • Correction to data reported on Stabilization grant saturation rate

NOTE: Child Care Stabilization Grant payments may be taxable. Please consult your tax professional, if you have an income tax questions or concerns.

A new 1099-NEC form for reporting non-employee compensation was introduced by the IRS for 2020. The State of Oregon will mail 1099-NEC forms to applicable child care providers in January of each calendar year showing the amount of grant funds disbursed to your child care facility for the subject tax year.

Please submit a new Form W-9 if you made any changes to your name, business name, address, Social Security number, or employer identification number (EIN). Please refer to the W-9 guide.

Visit https://oregonearlylearning.com/Archive-Emergency-Child-Care-Grants for an archive of all Emergency Child Care Grants.

Frequently Asked Questions

*NEW* FINANCIAL QUESTIONS

Are these funds taxable?

The Child Care Stabilization Grant payments are considered income. Please consult your tax professional if you have income tax questions or concerns.

Will my taxes go up?

It depends how you spend your grant funds. Child care programs that used grant funds for deductible business expenses may reduce their potential tax burden.

Will I receive tax forms related to these funds from the state?

The state of Oregon will mail 1099 forms to child care providers in January of each calendar year showing the amount of grant funds disbursed to your child care facility for the subject tax year.

Your 1099 form will be sent to the mailing address you provided to the state when you submitted your W-9 form. If you made changes to your name, business name, address, Social Security number, or employer identification number (EIN), please submit a new W-9 form to the state.

Please call 971-900-9770 if you have any questions about W-9 forms.

Where do I send my updated W-9 form?

You may email W-9 form changes to sfms.1.vendor@das.oregon.gov or mail to:

Department of Administrative Services
Statewide Financial Management Services
1225 Ferry St SE Floor 2
Salem, OR 97301-4278

Will the state be reviewing child cares’ compliance with the Grant?

The state does not have enough resources to monitor all child cares that were awarded the Grant Funds. Our approach of selecting child cares for review by random sampling will ensure that our resources can support the child cares selected for monitoring while fulfilling our fiscal monitoring responsibility. If selected, child cares will receive a written notice from the state notifying them of the upcoming review with instructions on how to prepare for it.

What will monitoring include?

The review process will verify that the federal requirements of the Grant have been met and that the Grant Funds were spent on allowable expenses. We will only be requesting information from you that helps the state verify your compliance with the Grant. If your child care is selected for monitoring, your participation is mandatory.

How many years do I need to keep my grant documentation?

The grant requires records to be kept for a minimum of six years.

Are there any federal audit requirements for the Child Care Stabilization Grant I need to know about?

No. Typically, the organizations receiving $750,000 or more in federal funds annually must have a single audit conducted for that year performed by an independent auditor. However, the Child Care Stabilization Grant Funds are not considered a sub-award and therefore are not subject to the federal single audit requirements. It is important to note that the state may still request records or seek information on your use of the Grant Funds.

Are the Child Care Stabilization Grants considered payments made to “beneficiaries of a federal program” or payments made to “sub-recipients of a federal sub-award”?

The Child Care Stabilization Grant payments are considered payments made to beneficiaries of a federal program.

OVERVIEW AND ELIGIBILITY

I am a Registered Family or a Certified Family licensed child care provider. Am I eligible?

Yes. Office of Child Care licensed child cares are eligible for this opportunity. Please see page 3 of the “Funding Opportunity” document on the ELD website.

Are recorded programs eligible for this Grant?

No, the American Rescue Plan Act requires eligible applicants to meet federal Child Care Development Funds Health and Safety requirements such as annual unannounced inspections, specific background checks, and specific training requirements. Please see “Who is eligible?” on page 3 of the “Funding Opportunity” document on the ELD website.

I receive funding from an Early Head Start or a Head Start organization through a Child Care Partnership Grant. Am I eligible?

Yes, child cares that are partially funded by an Early Head Start or Head Start organization are eligible to apply for a COVID-19 Child Care Stabilization Grant. Please see “Who is eligible?” on page 3 of the “Funding Opportunity” document on the ELD website.

Who is eligible to receive this funding?

Please see “Who is eligible?” on page 3 of the “Funding Opportunity” document on the ELD Website.

Do I need to apply to receive this Grant funding?

Yes, please see “What is the application process?” on page 5 of the “Funding Opportunity” document on the ELD website.

Is it a competitive Grant?

No, this is a non-competitive grant. Please see “Who is eligible?” on page 3 of the “Funding Opportunity” document on the ELD website.

I receive ongoing funding from ELD, am I eligible?

Applicants who are Early Head Start, Head Start, Oregon Pre-kindergarten, or Relief Nurseries are not eligible for a Grant because the funding is intended to help the child care sector, not publicly-funded programs. Please see “Who is eligible?” on page 3 of the “Funding Opportunity” document on the ELD Website.

I receive Oregon Department of Human Services (ODHS) child care subsidy payments, am I eligible?

Yes, applicants receiving ODHS child care subsidy payments are eligible to apply for a COVID-19 Child Care Stabilization Grant. Please see “Who is eligible?” on page 3 of the “Funding Opportunity” document on the ELD Website. It is not considered “double dipping” to receive subsidy payments and stabilization funds.

I receive Preschool Promise funding from ELD, am I eligible?

Preschool Promise providers that are not an Early Head Start, Head Start, Oregon Pre-kindergarten, or Relief Nursery may apply for this grant opportunity. Please see “Who is eligible?” on page 3 of the “Funding Opportunity” document on the ELD Website. 

Can I apply for Stabilization Grants if I received a Reopening Grant?

Yes, please see “Who is eligible?” on page 3 of the “Funding Opportunity” document on the ELD Website.

APPLICATION PROCESS

How much time do I have to make corrections to the information I submitted in my application?

You may request corrections to the application information you submitted up to the date your Grant is signed. If you need to make a correction to your submitted application, please contact us at ECCgrants@ode.oregon.gov  or 971-707-2029.

Does the preparation time count towards determining part-time versus full-time hours?

No. For this grant, the preparation hours do not count as child care.

When does the opportunity to apply for funding close?

This funding opportunity closes on December 31, 2021 at 5 p.m. Pacific Time.

Can I apply multiple times?

No, there is only one Grant per eligible applicant. Only those applicants who are applying for multiple child care sites/location may submit multiple applications.

How frequently will applications be reviewed?

Please see “What is the application process” on page 5 of the “Funding Opportunity” document on the ELD website.

How do I know if I am set up as a vendor in the state financial system?

ELD will verify your vendor status during the application review. If you are approved for a Grant and not established as a vendor, ELD will email you a W-9 Form to fill out in DocuSign.

How do I get set up as a vendor in the state financial system?

If you are selected for a Grant but you are not established as a vendor, you will receive an email notification that your application has been approved. The email will ask you to complete a federal W-9 Form to be established as a vendor. You will need your Tax Identification Number (TIN), Employer Identification Number (EIN), or Social Security number (SSN) to complete a W-9 Form. The information provided on the W-9 will be verified with the IRS. For assistance completing a W-9, please review our “W-9 Guide” on the ELD website.

Does it matter who fills out the Grant application?

It is up to your child care owner or director to determine who should complete the application. Please note that the person completing the application is certifying the child care provider will meet the funding requirements.

What if I manage several sites/locations? Do I have to complete an application for each?

Yes, a separate application for each site/location must be completed. Child care businesses may submit individual applications on behalf of the individual sites they manage, but may not combine all managed sites into a single application.

Do I have to accept the full Grant award?

No, on the application you can request to receive a lesser amount than ELD has estimated for the type of care you provide, if the grant award exceeds your operating expenses.

I made a mistake on my Grant application. Can I correct it?

No, you may not correct your submitted application. If you made an error in the application submitted to ELD, please contact us at ECCgrants@ode.oregon.gov or 971-707-2029.

How do I reset my password for my Survey Monkey Apply account?

You can reset your password using the “Forgot your password?” link at https://ode.smapply.org/acc/p/. You will be asked to confirm your email address and instructions on creating your new password will be sent to your email.

GRANT AWARD PROCESS

I am a self-employed family child care provider. Do I use the Grant Funds to pay myself?

Yes. The intent of this grant is to allow eligible family child care providers to use a portion of the Grant Funds to pay themselves. Such payment is an allowable cost under the personnel cost, payroll and salaries. Please see the bottom of page 6 of the “Funding Opportunity” document on the ELD website.

Do I have to increase wages for child care staff by at least 20%?

The requirement is to “use at least 20% of the total Grant Funds on increasing compensation of the child care staff.” You may choose to use at least 20% of the total Grant Funds to increase the wages of child care staff or you may choose to use those funds to increase some other form of compensation of child care staff. Please see page 6 of the “Funding Opportunity” document on the ELD website.

How will I receive my Grant?

All approved applicants will receive a Grant to sign electronically in DocuSign. To receive a Grant you must first be established as a vendor in the state financial system to receive payments.

How much money will I receive?

Grant amounts will vary based on provider type and other factors. Please see “How much are the Grants?” on page 4 of the “Funding Opportunity” document on the ELD website.

How will these funds be distributed?

Grant Funds will be disbursed in two equal payments. Please see “What is the payment process?” on page 7 of the “Funding Opportunity” document on the ELD website.

When will I receive my payments?

If approved, you can expect to receive your first payment within approximately three weeks after signing a Grant.

How do I check on the status of my application?

If you have not heard from ELD within two to three weeks of submitting your application, please email ECCgrants@ode.oregon.gov or call 971-707-2029. Be sure to check your email’s junk folder before contacting ELD about your application status.

How long do I have to sign my Grant?

If approved, you must sign your Grant within 30 days of receiving it.

How did ELD determine how much to award per child care license type?

The total funding available for all Stabilization Grants is $224 million. ELD used cost modeling to estimate the cost of operating a child care for a period of six months to develop a funding formula based on the following factors:

  • Number of child cares in Oregon that are eligible to receive this funding;
  • Type of child care;
  • Child care capacity;
  • Bonuses for providing certain types of care; and
  • Funding reduction for part-time care to balance out the funding for full-time care.

Are these funds taxable?

Funds may be subject to tax. The State of Oregon will mail 1099 forms to child care providers in January of each calendar year showing the amount of Grant Funds disbursed to your child care for the subject tax year. Please consult your tax authority for further questions.

What can these Grant Funds be used for?

Grant Funds may only be used for costs related to COVID-19. Please see “What are the requirements?” on page 5 of the “Funding Opportunity” on the ELD website.

How did you consider equity as a part of this Funding Opportunity?

ELD has addressed equity by providing base funding and bonus amounts for a certain types of care. For example, applicants who offer culturally responsive care are eligible for additional funds. ELD is actively conducting outreach efforts to ensure all eligible providers have an opportunity to apply for these funds. Please see “How much are the Grants?” on page 4 of the “Funding Opportunity” document on the ELD website.

What qualifies me to receive the bonuses?

You may self-attest that you provide the type(s) of care eligible for bonus amounts. Please note that this Grant may be subject to audit and monitoring.

Why can’t the payments be in one lump sum?

ELD is splitting up the payments in two equal amounts to help provide stable funding to the child care sector over the period of the Grant.

DOCUMENTATION REQUIREMENTS

What documents do I need to keep for auditing purposes?

For audits, documentation may include:

  • Child care records and supporting documentation related to your application.
  • Documentation to verify attendance of children and/or hours of care provided.
  • Expenditure records and supporting documentation related to costs incurred and how Grant Funds were spent, including but not limited to:
    • Mortgage/rent/space cost statements;
    • Utility statements;
    • Payroll and benefits records;
    • Original invoices and/or receipts for purchases of materials/supplies; and
    • Documentation of other benefits provided to child care staff members, such as coverage of insurance costs or tuition reimbursement.

The federal Office of Child Care has resources available to assist you in tracking expenses. You can also contact your local Child Care Resource and Referral (CCR&R) agency for assistance.

How do I document that I am meeting the requirements of the Grant?

First, you must take the time to read and understand all requirements referenced in your Grant. Failure to meet Grant requirements may result in return of payments already made to you and discontinuation of future grants. It is important for you to document all activities related to meeting the requirements of the Grant for auditing purposes.

Please see the Family Child Care Budget Guide and the Child Care Center Budget Guide for more tracking and documenting assistance.

The federal Office of Child Care has resources available to assist you in tracking expenses. You can also contact your local Child Care Resource and Referral (CCR&R) agency for assistance.

How many years do I need to keep my documentation?

The Grant requires records to be kept for a minimum of six years, please see “Section 5. Records Maintenance and Access” on page 1 in the sample Grant on the ELD website.

How do I get a Taxpayer Identification Number (TIN) for the W-9?

For individuals, TIN is generally your social security number. For businesses that have employees, TIN is the IRS-issued Employer Identification Number.

Please visit the IRS website https://www.irs.gov/businesses/small-businesses-self-employed/employer-id-numbers for more information about employer ID numbers.

What if I have to close my child care after I receive my Grant?

If your child care closes before the expiration of your Grant, you must return funds as directed by ELD. Please see “Section 9. Withholding Funds, Recovery” on page 2 and “Exhibit A, Disbursement” on page 6 of the sample Grant.

What if I move during the Grant period?

Please see “Requirements” on page 5 of the sample Grant on the ELD website.

Do you have a question that’s not answered in our FAQs? 

Please direct questions to ECCgrants@ode.oregon.gov or 971-707-2029 (8 a.m. to 5 p.m. Pacific Time, Monday through Friday). Frequently Asked Questions will be updated on this page.