July 2020 NCFN Update
IN CASE YOU MISSED IT: The National Children’s Facilities Network (NCFN) has relaunched! See this note from the NCFN Executive Committee for more information about the Network, including who to contact with questions or comments. You can also follow NCFN on Twitter and Facebook.
Policy Update
Democratic Lawmakers Introduce Series of Child Care Bills, Including Resources for Infrastructure
Democratic lawmakers in both the House and Senate have introduced a series of bills over the last several weeks that would dramatically increase the resources available to the child care sector. These bills include:
The Childcare is Essential Act (H.R. 7027 and S. 3874), introduced at the end of May by Representatives Rosa DeLauro (D-CT) and Bobby Scott (D-VA) and Senator Patty Murray (D-WA). This bill would create a $50 billion Child Care Stabilization Fund within the Child Care Development Block Grant (CCDBG) program.
The Child Care is Infrastructure Act (H.R. 7201), introduced in mid-June by Representative Katherine Clark (D-MA), would provide a $10 billion investment in our nation’s child care infrastructure over the next 5 years and provide dedicated technical assistance resources through experienced intermediaries like CDFIs. This proposal is based on the Bipartisan Policy Center’s Congressional Recommendations. See NCFN’s summary of the Child Care is Infrastructure Act.
The Child Care for Economic Recovery Act (H.R. 7327) introduced at the end of June by Democratic leadership on the House Ways and Means Committee and Appropriations Committee, would enact a series of investments in the child care sector, including $10 billion a year in mandatory child care funding for each of the next four years, as well as the $10 billion infrastructure proposal included in Rep. Clark’s Child Care is Infrastructure Act. See NCFN’s summary of the facilities-relevant provisions of the Child Care for Economic Recovery Act.
In addition to these bills focused specifically on the child care sector, House Democrats also included child care in the Moving Forward Act (H.R. 2), a $1.5 trillion package of bold infrastructure investments passed in the House last week. The child care language in the Moving Forward Act is identical to the language in Rep. Clark’s Child Care is Infrastructure Act.
This series of child care bills, as well as the inclusion of child care resources in the House Democrats’ infrastructure package, is a fantastic display of support for children, families, and providers. NCFN strongly endorses federal proposals that provide infrastructure grants to improve child care safety. Now more than ever it is important that congressional leaders are aware of the critical need for dedicated funding for ECE facilities, as well as related technical assistance and capacity building resources provided by CDFIs and other intermediaries. Please contact your congressional Representatives and encourage them to support the Infrastructure Grants to Improve Child Care Safety provision in any upcoming legislative vehicles. Contact NCFN Co-chair and policy subcommittee chair Nicole Barcliff for advocacy support, including talking points and contact information.
Negotiations on Next Phase of COVID Relief Legislation Expected to Advance This Month
Congress has not passed any additional COVID-19 relief legislation since the initial series of packages in March and April that enacted roughly $3 trillion in emergency spending. Last month the House did pass a $3 trillion emergency relief proposal, called the HEROES ACT, but the Republican-controlled Senate has not yet considered the package. We now expect the Senate to begin negotiations in earnest following the July 4th congressional recess, although Senate leadership has signaled their appetite for a much smaller relief package than has been proposed in the House, meaning that a final deal will likely be significantly more limited than the HEROES Act. NCFN’s top priority in the next phase of COVID relief legislation is ensuring the highest possible funding level for CCDBG, as well as enactment of the child care infrastructure grants proposed in Rep. Clark’s Child Care is Infrastructure Act.
Congress Extends PPP Application Deadline to August 8
The Small Business Administration’s (SBA) new Paycheck Protection Program (PPP), which Congress enacted in March through the CARES Act, offers forgivable loans to small businesses – including ECE providers – that keep employees on the payroll. The initial $349 billion in PPP resources was depleted on April 16, so Congress enacted an additional $310 billion in PPP resources at the end of April. This included a set-aside of $30 billion for community-based lenders with assets under $10 billion, including CDFIs.
The deadline to apply for PPP funds was June 30, 2020. Given the roughly $130 billion in remaining PPP resources and the ongoing need for small business support, Congress voted last week to extend the PPP application deadline to August 8. Several NCFN Members, including all five Executive Committee Members, are offering support to ECE providers seeking PPP loans. Please email NCFN Co-chairs Angie Garling and Nicole Barcliff if you have specific questions about connecting ECE providers with PPP loans.
Resources
What works in supporting early care and education: CDFIs tackle market challenges, Federal Reserve Bank of Minneapolis (June 2020)
“Through creative approaches to knowledge-, capacity-, and partnership-building, community development financial institutions are helping expand the supply of high-quality child care.” - Rob Grunewald and Ben Horowitz
Why Early Care & Education is Foundational to Advancing Racial & Gender Equity, Low Income Investment Fund (June 2020)
“Caring for and teaching babies, toddlers and preschoolers is work whose legacy is rooted in the labor of slaves and domestic servants and has long been relegated as “women’s work.” Today, the ECE workforce is still largely made up of women of color (40% nationwide), the skilled workforce is underpaid (averaging 31% of U.S. median income) and many families are left without options due to the untenable cost of care.” - Amy Chea and Hannah Taylor
Child Care Infrastructure and COVID-19: A New Reality, Bipartisan Policy Center (June 2020)
“While there has been a longstanding need to invest in facility improvements, the pandemic has shown a need to prioritize these investments so programs can effectively implement guidance that may mitigate the risk of virus exposure.” – Sarah Tracey and Linda Smith
COVID-19: Connecting small businesses to pandemic relief is a struggle, CDFIs say, Federal Reserve Bank of Minneapolis (May 2020)
“Program design and other factors may hinder access to COVID-19 relief loans for the most vulnerable entrepreneurs.” - Ben Horowitz
COVID-19 Makes it Clear: Support for Technical Assistance and Business Capacity Building is Critical for the Child Care Sector, Low Income Investment Fund (April 2020)
“Community Development Financial Institutions (CDFIs) are uniquely positioned to deliver critical TA and business capacity building support to ECE providers. CDFIs have developed decades of expertise assembling public and private sources of capital and deploying these resources to meet the diverse needs of community-based organizations.” – Olivia Barrow
Community Development Financial Institutions for Child Care: An Explainer, Bipartisan Policy Center (April 2020)
“A growing number of CDFIs recognize the critical role of child care in a community’s economic growth, and provide support to child care businesses through capital financing, credit enhancement, operational support, and technical assistance.” - BPC