Sneak Preview: OCC FAQ Addresses ARP Child Care Relief Funding
(The following was excerpted from a recent Thompson Grants 360 article.) The Department of Health and Human Services (HHS) Office of Child Care (OCC) recently issued a Frequently Asked Question (FAQ) document discussing how state lead agencies should manage child care emergency relief grant funds received under the American Rescue Plan (ARP) Act (Pub. L. 117-2).
ARP provided $24 billion for child care stabilization grants and $15 billion in supplemental Child Care and Development Fund (CCDF) discretionary monies. Although OCC, an office within HHS’ Administration for Children and Families (ACF), issued guidance this spring to states, territories and tribes pertaining to these funds, it is now issuing additional guidance to answer questions it most often receives from lead agencies.
In terms of spending plans, the FAQ notes that state and territory lead agencies, which are the entities within the state or territory with the authority to administer the program, are not required to submit a new separate report to OCC explaining how they will spend ARP stabilization funds, adding that OCC will assess information about the use of stabilization funds through each lead agency’s federal fiscal year (FY) 2022-2024 CCDF plan ― the ACF-118 ― which were due July 1. The ACF-118 details the purposes for which stabilization grants and CCDF dollars will be expended. Tribes will describe their child care stabilization grant activities via amendments to their FY 2020-2022 CCDF plan.
The document also says that lead agencies are not required to spend previous supplemental relief funds, such as those received under the Coronavirus Aid, Relief, and Economic Security (CARES) Act (Pub. L. 116-136), before spending ARP stabilization funds. “While lead agencies should be aware of obligation and liquidation requirements for the other COVID-19 related funding, [they] are strongly encouraged to obligate their ARP stabilization grant funds quickly to ensure they reach providers in need and protect the existing child care market,” the FAQ adds. “OCC also recommends that lead agencies be aware of allowable uses of funds and funding requirements with the multiple COVID-19 supplemental funds. Lead agencies may also consider how they can pair more flexible [emergency relief] funding … with the more prescriptive ARP stabilization funds.”
(The full version of this story has now been made available to all for a limited time here.)
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