May 2021 Monthly Update
MEMBERSHIP
We are pleased to welcome the following organizations as new NCFN members!
CDC Small Business Finance
Charter Schools Development Corp.
Executives Partnering to Invest in Children (EPIC)
La Fuerza Community Development Corp.
Northwest Side Community Development Corporation
The full list of NCFN Members is available on the NCFN website.
RESEARCH & REPORTS
Considerations for CDFIs Looking to Support the ECE Sector
A new resource from NCFN highlights the role CDFIs can play in supporting a thoughtful deployment of federal ECE resources, including five considerations to support a long-term sustained recovery of the ECE sector. Read the considerations >
Constructing the Third Teacher: New Jersey’s Center-based Facilities for Low-Income Children
A recent report prepared by Carl Sussman for the Maher Charitable Foundation explores the prevalence of facility quality issues, the physical attributes that contribute to positive child development, and potential strategies that can expand the supply and quality of early childhood facilities in New Jersey. Read the report >
Data-Driven ECE Investments Make a Difference in Philadelphia
A new report from NCFN Executive Committee Member Reinvestment Fund examining the impact of Philadelphia’s Fund for Quality (FFQ) and Early Childhood Education Loan Fund (ECE-LF) found that targeted, data-driven investments in individual ECE providers not only helped those providers create new high-quality seats, but spurred neighboring and nearby programs to do the same. Read the report >
In Case You Missed It: Resources from NCFN
How States Can Improve Child Care Facilities & Physical Spaces Using Federal Relief Dollars. Read the brief >
“Journey to Becoming Early Childhood Facilities Champions.” Learn more >
POLICY UPDATE
President Biden Proposes $1.8 Trillion American Families Plan
President Biden recently released an outline of the American Families Plan, a $1.8 trillion proposed investment in children and families that builds on the American Rescue Plan (enacted in March) and the American Jobs Plan (outlined in March). The American Families Plan includes $1 trillion in new spending and $800 billion in tax credits. Provisions of note include $200 billion for universal pre-K, making child care more affordable for families by capping payments to no more than 7% of household income, reimbursing providers for the true cost of care, increasing worker pay to $15/hour, expanding the Child Care and Dependent Tax Credit, and more. In response to the American Families Plan, a group of progressive lawmakers reintroduced the Universal Child Care and Early Learning Act, which would invest $700 billion in the child care industry.
Congress Continues Work on Infrastructure Package, Including Child Care Facilities
Before moving to the American Families Plan, Congress remains focused on turning President Biden’s American Jobs Plan into legislation. Notably, the president proposed $25 billion to upgrade child care facilities, and House Ways and Means Committee Chairman Richard Neal (D-MA) also recently proposed $15 billion for child care facility upgrades, including a set-aside for intermediaries to deliver critical technical assistance. Chairman Neal’s proposal for infrastructure grants and an intermediary set-aside is consistent with Congresswoman Katherine Clark’s Child Care is Infrastructure Act. As negotiations advance, NCFN is continuing to educate lawmakers about the need for child care facility grants and technical assistance resources delivered through experienced intermediaries.
ACF Shares Guidance on Child Care Stabilization Fund Resources
Yesterday the Administration for Children and Families (ACF) released an Information Memorandum on the Child Care Stabilization Grants enacted in the American Rescue Plan Act. States and territories may spend up to 10% of the child care stabilization funds for administrative, supply-building, and technical assistance activities; tribes can spend up to 20% on these activities. Uses include but are not limited to:
Start-up resources and grants
Administrative costs associated with increasing the use of grants and contracts for child care services
Facilitating a financing program with low- or no-interest loans to programs interested in start-up expansion, or improvement in areas of need
Facility improvement grants
Staffed family child care networks
Technical assistance on business practices
Developing and implementing a strategic plan for building supply
Expanding the use of shared services models
Conducting community needs assessments
States and territories can also use child care stabilization grants for facilities maintenance that meet the definition of minor renovations. This includes (but is not limited to) building or upgrading playgrounds, renovating bathrooms, installing railing, ramps, or automatic doors to make the facility more accessible, and removing non-load bearing walls to create additional space for social distancing. Tribes can use grants for construction and major renovation of facilities.
Treasury Department Guidance Clarifies Eligible State and Local Fiscal Relief Activities
Yesterday the Treasury Department released guidance on eligible activities in the $350 billion Coronavirus State and Local Fiscal Recovery Fund enacted in the American Rescue Plan Act. Several activities may be relevant to the child care sector, including:
Supporting small businesses, helping them to address financial challenges caused by the pandemic and to make investments in COVID-19 prevention and mitigation tactics, as well as to provide technical assistance. Recipients may employ this funding to execute a broad array of loan, grant, in-kind assistance, and counseling programs to enable small businesses to rebound from the downturn.
Providing premium pay for essential workers, which includes child care workers, educators, and school staff.
Serving the hardest-hit communities and families, which includes:
Addressing education disparities through new or expanded early learning services, and
Promoting healthy childhood environments, including new or expanded high quality child care, home visiting programs for families with young children, and enhanced services for child welfare-involved families and foster youth.
NEWS & RESOURCES
Member News
NCFN Member IFF provides emergency child care relief grants in Greater East St. Louis, IL. Read the story >
NCFN Member LIIF receives $3 million for child care small businesses. Read the story >
NCFN Member Reinvestment Fund shares the success story of Scottsdale Early Learning, Inc. in Dekalb County, GA. Read the story >
Other News
Office of Head Start: FY 2021 American Rescue Plan Funding Increase for Head Start Programs. Read the Program Instruction >
North Carolina Health News: Tap water tests find nearly 1 in 10 licensed child care centers in North Carolina have unsafe lead levels. Read the article >
Bipartisan Policy Center: 5 Reasons to Support Investments in Child Care Facilities. Read the op-ed >