The American Rescue Plan Act of 2021 includes about $39 billion dollars in funds for the child care industry. Monies are available through two funds; $24 billion in child care stabilization grants funding and $15 billion in another fund designed to make child care more affordable for families. Each state, territory, or tribe will receive funds based on the same formula used in the Child Care Block Grant. More information about the allocation of funds can be found in this article.
The general goal of the program is highlighted in the name – “Child Care Stabilization Grants.” Child Care providers may use the funds in various ways to address COVID-associated business expenses. In general, utilize the funds to continue providing child care and apply funds to operational items that help stabilize their child care business.
Each state, territory, and tribe has developed (or is in the process of developing) program guidelines for which child care providers are eligible, how to apply for grant funds, and how the child care stabilization grant funds may be used. As I write this article, it is early November 2021, just over half of all states and territories have released information about the Child Care Stabilization Grants. More information can be found here.
As a child care business owner, proper application and utilization of Child Care Stabilization Grant funds will be very important and have substantial short-term and long-term impacts on your child care business. Over the last few months, I have spoken with many child care owners about how they planned to use the funds in their child care business. Some child care owners have spent considerable time analyzing how various utilizations of grant funds will have the greatest impact on their program, employees, parents, and financial operations of their child care business. But, unfortunately, I have also heard too many owners of child care businesses indicating they had not looked at different grant fund allocations and the impact of each option. Given the historic nature of the Child Care Stabilization Grants and the substantial funds that many child care businesses will receive, it is important to analyze all options and make sure the funds are being used in ways that will have the greatest impact short-term and long-term.
Through my child care education and consulting company, ChildCareOwner.com, we will be providing Child Care Stabilization Grants free resources and training. And for child care owners seeking additional assistance, we offer (for very reasonable fees) one-on-one Child Care Stabilization Grants consulting as part of our Custom Child Care Financial Management Program. You may learn more about our financial consulting programs at ChildCareOwner.com.
Be sure to join our mailing list and sign up for future online Child Care Stabilization Grants training. Solutions 4 Child Care and ChildCareOwner.com focuses on the business side of child care. Therefore, our Child Care Stabilization Grants training will cover things like; how to financially analyze the various utilization of Child Care Stabilization Grant funds, how funds expenditures will positively or negatively impact your child care business today and in the future, what fund utilization will result in the highest degree of stabilizing your child care business, how will the value of your child care business be impacted. More topics – all focused on helping child care owners build a successful child care business.