Supplemental Funds for Child Care Disaster Recovery Planning Grants – Hurricanes Fiona and Ian

CCDF-ACF-PI-2023-02

Publication Date: August 7, 2023
Current as of:

En Español (PDF)

Program Instruction

  1. Log No: CCDF-ACF-PI-2023-02
  2. Issuance Date: August 4, 2023
  3. Originating Office: Office of Child Care
  4. Key Words: Child Care and Development Fund, CCDF, disaster recovery, Hurricanes Fiona and Ian

To

State, territory, and tribal lead agencies administering the Child Care and Development Fund (CCDF) program, as amended, in areas affected by Hurricane Fiona or Ian.

Subject

Supplemental Funds for Child Care Disaster Recovery Planning Grants — Hurricanes Fiona and Ian.

References

The Child Care and Development Block Grant (CCDBG) Act (42 U.S.C. 9857 et seq); 45 CFR Parts 98 and 99; Consolidated Appropriations Act, 2023 (P.L. 117-328).

Purpose

  1. To provide information to state, territory, and tribal lead agencies regarding the distribution of child care disaster recovery funds, and
  2. To provide guidance on allowable activities, how to apply, obligating and expending funds, reporting requirements, recipient monitoring, and other requirements.

Background

The Consolidated Appropriations Act, 2023 (P.L. 117-328) provides $100 million in supplemental Child Care and Development Fund (CCDF) funding for necessary expenses directly related to the consequences of Hurricanes Fiona and Ian. The Administration for Children and Families (ACF) determined that these funds will be used for recovery grants to state, territory, and tribal lead agencies administering the CCDF program in areas affected by Hurricanes Fiona or Ian in which a major disaster or emergency has been declared under section 401 or 501 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170 and 5191). Therefore, CCDF lead agencies in the following states and territory are eligible for funding: Florida, North Carolina, Puerto Rico, and South Carolina. In addition, CCDF lead agencies for the following tribal nations are eligible: Catawba Indian Nation in South Carolina, Eastern Band of Cherokee Indians in North Carolina, and Miccosukee Tribe of Indians of Florida.

Distribution of Funds

The legislation requires ACF to distribute funding to the eligible states, territory, and tribes based on assessed need, notwithstanding the formula for allotment set forth in the CCDBG Act. The funds will be distributed in two phases. 

In phase one, $10 million has been set aside for eligible CCDF lead agencies to undertake a process of planning for implementation of activities and remedies to address the impacts of the applicable disaster on child care. ACF has determined expected amounts for planning grants based on assessed need. We anticipate phase one planning grants will be awarded by September 30, 2023.

  • The states and the territory located where a major disaster has been declared will receive an amount up to $2.25 million.
  • The state located where an emergency has been declared will receive an amount up to $1.75 million.
  • Tribal lead agencies with medium CCDF allocations located in a designated area covered by the disaster legislation will receive up to $600,000.
  • The tribal lead agency with a small CCDF allocation located in a designated area covered by the disaster legislation will receive up to $300,000.

In phase two, approximately $90 million will be available for implementation of disaster recovery plans developed in phase one. Additional guidance and application instructions for phase two funding will be issued in FFY24.

Allowable Activities

This supplemental appropriation indicates that funds must be used for necessary expenses directly related to the consequences of Hurricanes Fiona and Ian, including activities authorized under section 319(a) of the Public Health Service Act. While funds cannot be used for the sole purpose of preparing for future disasters, recovery projects may have a collateral benefit of better preparedness for future disasters. These supplemental funds may be used for alteration, renovation, construction, equipment, and other capital improvement costs, including for child care facilities, and for other allowable expenditures related to child care, as necessary to meet the needs of areas affected by Hurricanes Fiona and Ian. Section 658F(b) — which prohibits states and territories from expending regular CCDF funding for the purchase or improvement of land, or for the purchase, construction, or permanent improvement (other than minor remodeling) of any building or facility — does not apply to these supplemental funds. ACF encourages lead agencies, including states and the territory, to consider this an opportunity to address issues of child care supply through renovation and construction of new child care facilities in the areas impacted by Hurricanes Fiona and Ian, with a specific focus on climate-resilient structures.

Eligible lead agencies may initially request funds in phase one to support their planning of a larger request with funding available in phase two. Lead agencies should consider the recovery needs of all impacted child care providers in their planning, regardless of participation in the child care subsidy program, so long as the providers meet state and local health and safety requirements. Lead agencies are encouraged to make a thorough assessment of their temporary and long-term facility needs, including outdoor play areas. Structural damage and environmental problems not properly identified and addressed can create hazards and health risks months after initial damage occurs. We encourage consideration of obtaining the services of a structural engineer, architect, and environmental consultant during the assessment phase so all costs necessary to ensure a full restoration are identified. For example: 

  • Lead agencies may request planning funds to hire a consultant to coordinate the project to build a new center or renovate family child care homes in the impacted area. This effort could result in a phase two request for construction.
  • Lead agencies may request planning funds to investigate the impact of the hurricane across their service area. They may hire a consultant to interview staff, contractors, and constituents (families and providers) to learn more about the impact of the hurricane on child care services and facilities in the jurisdiction. This effort could result in a phase two request for funds to reimburse the lead agency, contractors, and providers for allowable expenses, including for expenses incurred in the immediate aftermath of Hurricanes Fiona or Ian.

Subject to ACF approval, lead agencies may also use planning grants for allowable activities other than planning, including allowable phase two activities or reimbursement for costs previously incurred, as further described below.

ACF anticipates that lead agencies’ phase two funding requests will likely fall into one or more of the following categories:

  1. Construction, Renovation, and Alteration of Child Care Facilities
    This category includes renovation, construction, or alteration of facilities or outdoor play spaces, including other capital improvement and planning expenses (e.g., assessments, architectural or engineering services, requests for bids).

  2. Materials, Supplies, Furnishings, Vehicles, and Equipment
    This category includes all costs necessary to purchase or replace lost or damaged operating supplies, materials, furnishings, or equipment, such as curriculum resources or generators. Reviews of losses should include indoor and outdoor play areas, kitchens, program and administrative offices, and any other service areas. Costs may support supplies, materials, equipment, and furnishings needed to support the delivery of temporary services or facility activities until program services can be fully restored.

  3. Other Child Care Supply Building
    This category could include other activities to increase the supply of child care in areas impacted by Hurricane Fiona or Ian. For example, lead agencies may consider providing start-up grants to incentivize new child care providers, providing technical assistance on child care business practices, supporting family child care networks, supporting unlicensed providers to become licensed, providing bonuses for providers in underserved areas, doing outreach to providers who may have closed, and expanding the use of grants and contracts for child care services.

  4. Mental Health Consultation
    This category could include the costs of providing training and materials to child care providers on trauma-informed practices or contracting with qualified practitioners to expand existing mental health supports.

  5. Quality Improvement Activities
    This category could include providing materials and technical assistance to restore licensing compliance.

  6. Direct Services
    This category could include reimbursement for costs to extend eligibility or to cover copayments for impacted families.

    Allowable activities are not limited to the activities listed above, as it is not possible to identify in advance all the circumstances in which these disaster assistance funds may be needed. Therefore, lead agencies may expend supplemental disaster funds for any other allowable CCDF activity that addresses the needs of impacted communities and that are directly related to the consequences of Hurricane Fiona or Ian. Further, the supplemental appropriations law specifically allows funds to be used for obligations incurred prior to the date of enactment of the law. Disaster recovery needs identified may not fully reflect how services were delivered prior to the disasters but should be responsive to the current community needs.

    The funds are not available for costs reimbursed by the Federal Emergency Management Agency or under a contract for insurance, or by self-insurance. Additionally, the law indicates that the following requirements do not apply: 1) minimum quality expenditure and infant and toddler quality expenditure requirements at 658G of the CCDBG Act, 2) the administrative cost cap at 658E(c)(3), and 3) the direct services expenditure requirement.

How to Apply for Phase One Funds

To receive the phase one funds, eligible state, territory, and tribal lead agencies must submit a letter from the lead agency authority indicating an intention to use the funds for planning activities, including a justification for requesting the funds and demonstration of the need for assistance. The letter should include:

  1. The relevant major disaster or emergency declaration under section 401 or 501 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170 and 5191),
  2. A description of the affected area, including number of child care facilities damaged or closed, and approximate number of children impacted,
  3. Activities for which the lead agency intends to use the planning funds (see examples in above section), and
  4. Information on previous expenses related to the impact of Hurricanes Fiona or Ian on the CCDF program, that were not covered by other federal funds or insurance, for which reimbursement is requested (if applicable).

The letter will be submitted via email to the Child Care Regional Program Manager in your ACF Regional Office by September 6, 2023.

Obligating and Expending Funds

Lead agencies must follow the applicable obligation and liquidation periods when expending and accounting for these supplemental funds. 5

Planning grants will be awarded in FFY23. Lead agencies will have three additional years to obligate the funds, until September 30, 2026. Lead agencies will have one additional year to liquidate the funds, until September 30, 2027. We expect the remaining funds for phase two will be awarded in FFY24; lead agencies will have three additional years from the date of the award to obligate these funds, until FFY27, with an additional year to liquidate the funds, until FFY28.

Reporting Requirement

States and the territory must submit quarterly expenditure reports on the ACF-696 Financial Reporting Form for the Child Care and Development Fund State & Territory Lead Agencies, and tribes must submit annual expenditure reports on the ACF-696T Financial Reporting Form for Child Care and Development Fund Tribal Lead Agencies, until the funds are fully expended or expire. Additional guidance for including these funds on the financial report and related requirements, e.g., property reporting if applicable, will be forthcoming.

Monitoring

ACF will monitor the lead agencies’ compliance with applicable statutory and regulatory requirements for these funds by reviewing CCDF Plans and expenditure reports. Additionally, ACF may issue additional monitoring protocols through information memoranda. Lastly, ACF may use on-site monitoring reviews to ensure compliance.

Resources

  1. Consolidated Appropriations Act, 2023  (PDF)
  2. CCDF Final Regulations (2016) (PDF)
  3. Child Care and Development Block Grant Law (2014) (PDF)

Inquiries

Please direct any questions to occdisasterrecovery@acf.hhs.gov, copying the Child Care Regional Program Manager in the appropriate ACF Regional Office.

/s/
______________________________
Ruth Friedman
Director
Office of Child Care

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