January 2021 Monthly Update
Membership
We are pleased to welcome the following organizations as new NCFN members!
Craft3
Enterprise Community Partners
Kids Cabin Family Childcare Home
RESEARCH & REPORTS
How Early Care and Education Intersects with the CRA
A recent article from Rob Grunewald and Ben Horowitz at the Federal Reserve Bank of Minneapolis explores ways that both banks and early care and education (ECE) providers can mutually benefit under the Community Reinvestment Act (CRA). Read the article >
For more information, read NCFN's April 2020 comment letter on proposed changes to CRA.
Opportunities for Advancing the Nation's Early Care and Learning Infrastructure
Last month NCFN sent a transition memo to the incoming Biden-Harris Administration outlining opportunities for advancing the nation’s early care and learning infrastructure. Read the memo >
Supporting the Third Teacher: Investing in Early Learning and Care Facilities
Build Up California has released an issue brief with information about the need for public investment in renovations and repairs of facilities' infrastructure in California, and related recommendations for the 2021-22 State Budget. Read the Issue Brief >
POLICY UPDATE
On December 27, 2020, a $900 billion coronavirus relief bill was enacted alongside $1.4 trillion in fiscal year (FY) 2021 funding, effectively avoiding a government shutdown and providing relief to struggling households.
FY 2021 Appropriations
The FY 2021 spending bill included an $85 million increase for the Child Care Development Block Grant (CCDBG), bringing total funding to $5.911 billion. The bill also increased Head Start funding by $135 million for a total funding level of $10.748 billion. The New Markets Tax Credit (NMTC), which has been used to finance high-quality child care facilities across the country, was extended at an annual allocation of $5 billion from 2021 through 2025.
COVID-19 Relief Package
The COVID-19 relief portion of the bill included $10 billion for child care through CCDBG (maintaining additional flexibilities included in the CARES Act) and $250 million for Head Start. It also provided $248 billion for additional loans to small businesses under the Paycheck Protection Program (PPP) and $12 billion of direct grants and investments to community development financial institutions (CDFIs) and minority depository institutions (MDIs).
The 117th Congress
After a brief delay of the joint session when rioters stormed the U.S. Capitol on January 6, Congress certified President-elect Biden’s win. He will be inaugurated and take office on January 20. The Senate is now divided 50-50 between Republicans and Democrats after Raphael Warnock (D) and Jon Ossoff (D) were successful in Georgia’s January 5 runoff elections. With Vice President-elect Kamala Harris (D) serving as the deciding vote in the event of a tie, Democrats will control the U.S. Senate for the first time in six years. Senator Chuck Schumer (D-NY) is expected to become the next Senate Majority Leader, replacing current Senate Majority Leader Mitch McConnell (R-KY).
NEWS & RESOURCES
NCFN Member First Five Nebraska was recently profiled in a blog post by the US Chamber of Commerce Foundation, which highlights First Five Nebraska’s efforts to engage the business community in promoting high-quality early childhood opportunities Read the article >
NCFN Member IFF has published a new children’s book, How My School Fights a Virus, that offers practical tips on returning to school based on CDC and MI Safe Schools Roadmap recommendations Read the book >
NCFN Member Low Income Investment Fund (LIIF) has published a blog post, written by LIIF CEO Daniel A. Nissenbaum, titled Child Care is the Small Business Investment Our Economy and Nation Needs Read the blog >
NCFN Member Reinvestment Fund has shared the results of a recent survey that sought to gain an understanding of what parents in Philadelphia were doing for child care before the onset of the COVID-19 pandemic, how that has changed, and what their priorities are as they contemplate returning their children to child care. Read the article >