June 2021 Monthly Update
MEMBERSHIP
We are pleased to welcome the following organizations as new NCFN members!
Children's Environmental Health Network
City First Enterprises
82nd Street Academics
The full list of NCFN Members is available on the NCFN website.
RESEARCH & REPORTS
NCFN Releases Paper on the Co-location of ECE Facilities and Affordable Housing
Co-locating ECE facilities with affordable housing developments is a promising strategy to improve family access to two vital sources of household stability and economic mobility. Co-location is also a practical strategy to work across silos and deliver two critical community amenities in an efficient, sustainable, and user-friendly manner. Still, there remain many logistical and financial challenges that impede the ability to complete more of these projects. In the second piece in NCFN’s Making Space series, NCFN co-chair LIIF dug into policy strategies to support co-location. The research paper, Building Better for Families: Policy Strategies for the Co-location of Early Care and Education Facilities and Affordable Housing, highlights a combination of local, state, and federal policies that can support more intentional co-location efforts. Read the paper >
POLICY UPDATE
NCFN Launches New Child Care Facilities Advocacy Tool
As Congress negotiates a potentially historic investment in our nation’s infrastructure, NCFN has launched a new online advocacy tool for stakeholders to ask Congress to invest in child care facility upgrades that improve quality and expand the supply of child care. Take Action >
California State Subcommittees Propose $455 Million for Child Care Facilities
Last week, the California Assembly and State Senate Budget Committees approved a proposal of $455 million for child care facilities: $250 million for the Early Learning and Care Infrastructure Block Grant and $205 million for a new Build Back program to expand child care capacity in high-need communities. With leaders of both houses of the Legislature on the same page, negotiations now turn to Governor Newsom as they work to reach a final agreement before June 15. Learn more from Build Up California, a statewide network dedicated to expanding, improving, and sustaining the supply of early learning and care facilities.
President Biden Releases FY 2022 Budget Request
On May 28, President Biden released his Administration’s $6 trillion budget for FY 2022. The budget request includes the American Jobs Plan, American Families Plan, and a $1.5 trillion proposal for non-defense discretionary spending to fund federal agencies in FY 2022. Spending would grow to $8.2 trillion by FY 2031 under this plan, and deficits would exceed $1 trillion for a decade.
The President’s budget is the first step in the process of crafting annual appropriations bills for FY 2022, which begins on October 1. Key highlights relevant to child care and early learning include:
Child Care and Development Block Grant: $7.4 billion (increase of $1.5 billion from FY 2021)
Head Start: $11.9 billion (increase of $1.2 billion from FY 2021)
Preschool Development Grants: $450 million (increase of $175 million from FY 2021)
Facilities Needs Assessment: The Administration for Children and Families included a response to report language inserted by congressional leaders in the FY21 Labor Health and Human Services and Related Agencies Appropriations bill requesting that the agency submit a feasibility study on the ability to conduct an assessment of child care facilities needs. The response can be found on p. 87 of the HHS congressional justification.
The House Appropriations Committee is expected to consider their funding bills in June or July, and the Senate consideration will likely occur in July or August. If no consensus is reached on the funding bills, Congress may rely on a stopgap funding measure (a continuing resolution) to avoid a shutdown after the September 30 deadline to fund the government.
House Republicans Release Paid Leave and Child Care Proposal
On May 27, House Ways and Means Republicans unveiled an early draft of the “Protecting Worker Paychecks and Family Choice Act,” a bill that seeks to increase access to paid family and medical leave and affordable child care. The bill provides states the option to use child care stabilization funds to increase the availability of safe child care facilities by supporting the improvement of child care facilities to meet health and safety standards and to expand child care services. Funds cannot be used for new construction. The legislation also allows subgrants to intermediaries providing technical assistance.
American Rescue Plan Act (ARPA) Implementation
HHS Releases Guidance on Head Start ARPA Funding
The Department of Health and Human Services (HHS) issued guidance on the allowable uses of Head Start American Rescue Plan Act funding. Head Start programs have an opportunity to enhance their facilities in order to provide in-person comprehensive services.
IRS and Treasury Department Announce Child Tax Credit Payments
On May 17, the IRS and the Treasury Department announced that the first monthly payment of the expanded Child Tax Credit (CTC), authorized under ARPA, will be made on July 15. Roughly 39 million households are slated to begin receiving monthly payments; eligible taxpayers do not need to take any action now other than to file their 2020 tax return if they have not done so. The IRS urges community groups to share this information.
Treasury Department Releases Guidance on ARPA’s State and Local Relief Funds
On May 10, the Treasury Department released details on the allowable uses of the state and local aid contained in the American Rescue Plan (ARP), which was signed into law by President Biden earlier this year and began accepting applications from states and municipalities for the $350 billion in relief funds. Additional information is available in this summary from the National Association of Counties.
OCC Halts Implementation of Community Reinvestment Act Rule
On May 18, the Office of the Comptroller of the Currency (OCC) halted the implementation of its 2020 rule overhauling the Community Reinvestment Act (CRA). The rule, if implemented, would have dramatically changed how banks would be measured on their lending and investment to low income communities. The announcement ensures that the OCC will not proceed with the 2020 rule and provides the three bank regulators (OCC, the Federal Deposit Insurance Corporation, and the Federal Reserve) an opportunity to consider jointly issuing new regulations, which is the preference of the community development and banking industries.
NEWS & RESOURCES
Member News
Child Care Facilities as the Third Teacher: An Interview with Carl Sussman and Linda Smith. Watch the interview >
NCFN Member LIIF Marshalls $40 Million in Child Care Relief. Read the announcement >
Other News
Senator Alex Padilla pushes for child care as part of nation's infrastructure. Listen to the radio story >
Upcoming Events
LIIF and the Federal Reserve Bank of San Francisco:
Harnessing the American Rescue Plan Act to Support Innovation in Child Care
June 24 | 12:00 PM-1:00 PM PT
Register here >