Stabilizing Child Care and COVID-19 FAQs

The Frequently Asked Questions (FAQs) describes how Lead Agencies can support the stability of the child care sector during and after the COVID-19 public health emergency and measures to prevent, prepare for, and respond to coronavirus. Questions are grouped in the drop-down menu below into four major categories—ARP Stabilization Grants, Supplemental Funds, Tribes, and Emergency Response—and each category has subcategories.

Description of Categories

ARP Stabilization Grants — Congress awarded approximately $24 billion to the CCDF program with the goal of providing financial relief to child care providers to help defray unexpected business costs associated with the COVID-19 pandemic, and to help stabilize their operations so that they may continue to provide care. States, territories, and tribes must use the majority of these funds to provide subgrants to child care providers. FAQs in this category focus on questions about how to implement subgrant programs and allowable uses for these funds by the provider.

Supplemental Funds — Congress awarded additional (or “supplemental”) funds to the CCDF program through several COVID-19 relief packages (i.e., the CARES Act, the CRRSA Act, and the ARP Act). These funds, which have different flexibilities and restrictions from regular CCDF funds, can be used to respond to the COVID-19 pandemic while carrying out the activities of CCDF programs. These FAQs describe those flexibilities and answers questions about how to use the COVID-19 Supplemental funds.

Tribes — Tribal Lead Agencies have additional flexibilities to meet the unique needs of the populations they serve. FAQs under this heading discuss stabilization subgrants and supplemental funding in relation to Tribal-specific flexibilities.

Emergency Response — includes FAQs about temporary, short-term measures and existing flexibilities available to Lead Agencies under CCDF that may be taken during the current public health emergency in response to COVID-19.

ARP Stabilization Grants: Applications

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If a provider meets applicable standards when they apply but no longer meets them (e.g., a significant licensing violation jeopardizing child safety) prior to receiving funds, can lead agencies reverse an application decision before awarding funds?

Lead agencies may reverse an application approval prior to the award of funds if something changes between the approval and award, including, but not limited to, a licensing violation or revocation, fraud, or permanent closure of a provider. Lead agencies should notify a provider as soon as the decision to reverse the application is made and provide information on why it was reversed and an opportunity to appeal the decision.

If a child care provider is temporarily closed due to COVID-19 at the time of application, is there a timeframe for when the provider must reopen to qualify for a subgrant? Can the lead agency require a provider to reopen within a certain time?

OCC is not imposing a specific timeframe for when a temporarily closed provider due to COVID-19 at the time of application must reopen. Rather, lead agencies have the discretion of placing reasonable conditions or timelines with regard to reopening on child care providers who receive a subgrant. (See section 2202(d)(B)(i) and (ii) of the ARP Act