From July 1st - July 15th, previously approved providers will need to update their existing application in order to receive a second payment. You can update your existing application by updating Section 3 and confirming employees are still employed and whether they have been paid a portion of the Staff Retention Expenses Award. Providers will also need to confirm banking information in Section 5.

No other application updates are required.

Approved grantees from round 1 will have to update their existing application. No new applications or documentations are required.

Due to a surplus of funds, there will be an additional Operation Expenses Award distributed to each provider, in addition to the Staff Retention Expenses Award. Operational Awards will still be calculated as a per-child amount based on service type and licensed capacity. However, the amount per child is decreasing from the first round.

Staff Retention Expenses Awards will not be tiered for this round -- all staff will receive the same dollar amount.

Funds must be spent by October 24, 2024 instead of August 15, 2024. Unspent funds will need to be returned November 7th.

This additional funding is only for providers who applied and were approved for funding through the Supplemental Child Care Program. No new applications will be accepted.

Providers will receive both an operational base award and staff retention expenses award in this payment.

The Operating Expenses base award is a per-child amount based on service type and licensed capacity. The numbers below are estimated payments for Round 2. These may change based on final application numbers.

The Staff Retention Expenses Award will be issued as a flat payment amount of $1,000. This will not vary by position. Staff are only eligible for the retention award if they were included and approved in the initial application.

No, new staff cannot be added to the application. You must update your existing staff list to indicate whether staff are still employed. All staff still employed from your original list will be eligible for the staff retention payment.

Providers will receive the additional funding in September 2024. All funding should be spent by October 24, 2024. The final reports are due on November 14, 2024.

Providers will be able to use these additional funds as outlined in the original round of funding -- there are no changes to permissible fund usage. These are outlined in the 'use of funds' section of the FAQ below.

The State of Hawaii Department of Human Services has received funds through the American Rescue Plan Act (ARPA) of 2021 to provide assistance to licensed child care providers experiencing financial hardship and child care market instability due to COVID-19. This funding is intended to improve child care provider staff retention and recruitment efforts, and cover the financial obligations of continuing operations, preventing permanent closures, and/or enabling programs to re-open safely and with financial resources to Hawaii’s families. More information is located here.

Public Consulting Group (PCG), on behalf of the State of Hawaii Department of Human Services, will administer funding for the Supplemental Child Care Grant Program.

The grant period is from January 2, 2024 to October 24, 2024. Providers will receive two payments for this grant – the first in May 2024 and the second in June 2024. The first payment will include the Operating Expenses award and first half of the Staff Retention Expenses award. The second payment will include the second half of the Staff Retention Expenses award.

Update: The grant period has been extended to October 24, 2024. First payments were distributed in May & June 2024. Second payment will be distributed in September 2024.

The deadline for the initial application is February 9, 2024 at 11:59 P.M. The deadline to confirm initial application details in order to receive a second payment is Spring 2024.

Providers who applied for the first payment will be required to confirm they want to receive the second half of their Staff Retention Expenses award. You will receive an email prompting you to return to your application and confirm that the staff listed previously in your initial application are still employed.

Update: Providers who applied for the first payment will be required to confirm their staff list in order to receive a second payment which includes both an operational award and a staff retention award.

The Operating Expenses base award is a per-child amount based on service type and licensed capacity.

The formulas for the awards are as follows:

The Staff Retention Expenses award is based on staff position type. The formulas for the awards are as follows:

Child care providers must have been licensed as of December 31, 2022:

• Family Child Care Home
• Group Care Home
• Group Center / Infant Toddler Center
• Before / After School Program
• Legally Exempt A+ Provider contracted by DOE

In addition, all programs must also be:

• Currently open and available to provide services.

Note: For all providers except Family Child Care providers, only Registered Agents or Officers of the organization may complete and sign an application. If you have previously applied and are not authorized to do so per the above terms, please contact our Call Center at (808) 439-6687.

Update: In order to be eligible for the second round of funding, providers must have applied and been approved for the first round.

1. Visit the DCCA (Department of Commerce and Consumer Affairs) to look up who is registered/attached to the business license:Hawaii Business Express website. Whoever is registered on file would have to request this update. As this may be a long process, for our purposes/in the short term, please send documentation that the new authorized signer you are proposing has the authority to serve as the authorized signer for your program (e.g., board meeting minutes, DCCA record filings, etc.)

2. Provide us with new authorized signer information:

   • Previous authorized signer first/last name, number, email
   • New person’s first and last name, title, number, email
   • Your Provider Name, Provider ID, and Service ID(s)

You must have been fully licensed by December 31, 2022 in order to be eligible for funding. Any providers licensed after December 31, 2022 are not eligible to apply.

No, child care providers are not required to be operating at full capacity in order to receive funding.

In order to be a qualified child care provider and eligible to receive a subgrant, a child care provider must be open to provide child care services.

The Operating Expenses Award amount is pro-rated based on the percentage of the curriculum that is dedicated to faith-based services, if applicable. For example, if 48% of the curriculum is focused around faith, 52% of the total Operating Expenses base award amount will be paid to the program. Similarly, the Operating Expenses Award amount is pro-rated based on the percentage of the curriculum that is dedicated to extended day child care services, if applicable. For example, if 48% of the curriculum is focused around extended day child care, 48% of the total Operating Expenses base award amount will be paid to the program. For all other inquiries regarding the calculation related to funding amounts included within your award letter, please refer to the FAQ labeled “What are the funding amounts?”.

Yes, all child care providers who have received financial assistance through previous grants and/or loans are still eligible to apply for funding.

Applicants must apply, be eligible, and be approved to receive funding. Certain terms and conditions of the subgrant must also be met:

• Agree to use funds for specified categories and maintain records and other documentation to support the use of funds received
• Be in good standing and compliance with the State of Hawaii regulatory authorities
• When open and providing services, implement health and safety policies in line with guidance and orders from corresponding state, territorial, tribal, and local authorities and, to the greatest extent possible, implement policies in line with guidance from the Centers for Disease Control and Prevention (CDC)
• For each employee, pay at least the same amount in weekly wages and maintain the same benefits and not involuntarily furlough employees
• Provide relief from copayments and tuition payments for families enrolled in the program when able and, to the greatest extent possible, prioritize relief for families struggling to make either type of payment if unable to provide relief for all families

No. A child care facility that is either part of/owned by/operated by a private educational institution, is not eligible for funding. An organization or individual that owns or operates both a private educational institution and a child care facility may be eligible for funding only if they can provide evidence that the operations and finances of the private educational institution are completely separate from the operations and finances of the child care facility so that is it clear a child care grant would not support or benefit the private educational institution in violation of article X, section 1 of the Hawaii State Constitution.

To be in good standing, you must certify that your program:

• Complies with the State of Hawaii Department of Commerce and Consumer Affairs for the type of business which it is held out to the public
• Complies with the State of Hawaii Department of Taxation and Internal Revenue Service’s tax requirements and is current with all state and federal tax obligations
• Complies with the State of Hawaii Department of Labor and Industrial Relations requirements which include, but are not limited to, section 103-55 wages, hours, and working conditions of employees for workers’ compensation, unemployment compensation, payment of wages, and safety

• "Qualified exempt provider" means child care that is operated as an A+ after-school program authorized by the department of education in accordance with sections 302A-408 and 302A-1149.5, HRS, and may be exempt from licensure by the department under section 346-152, HRS.

ALL child care caregiver staff qualify for the Staff Retention Expenses Award – this does not apply to non-caregiver staff. Eligible staff includes caregivers that are directly employed by the child care facility at the time of application.

Depending on their position category, caregiver staff are eligible for one of two amounts (see table in ‘Program Details’ section above). Providers will be prompted in the application to select the ‘Position Category’ for each staff member. Where applicable, this should be the position that staff are qualified for in the HI DHS Early Childhood Registry (this does not apply to Family Child Care Providers and BAS staff).

For Family Child Care Providers, the Staff Retention Award will only go to the primary caregiver. If Family Child Care providers use other adult household members to assist with their child care, they may use a portion of their operating expenses award to provide them with compensation. This expense would be classified as a Personnel and Professional Development Cost. Household members should have a background clearance and be in the department’s record system.

Definitions:

Caregivers - Individuals that work for the child care facility who work in a child-facing role. Examples of caregivers may include: directors, teachers, assistant teachers, aides, infant and toddler lead caregivers and caregivers, program leaders, assistant program leaders and substitutes.

Non-caregivers - Individuals who work for the child care facility in a supportive or administrative role. Examples of non-caregiver staff may include: office staff, custodians and kitchen staff.

If you are self-employed and consider yourself to be a child care facility staff member you may be eligible for the Staff Retention Expenses award. Be sure to include your own name, title, and start date in the employee listing as a part of Section 3 of the application in order to be included for the Staff Retention Expenses award.

No. You will be required to confirm that employees entered at the time of initial application are still employed. No new employees can be added at this time. However, if caregiver staff begin working for your program after the time of initial application, you may use choose to use a portion of your Operating Expense award for retention efforts, such as staff bonuses.

Applicants must complete an initial application by February 9 to receive the first half of the Staff Retention Expenses award. In this application applicants will be prompted to enter a staff roster for all caregiving staff employed at each service. To receive the second half of the Staff Retention Expenses award, applicants will need to confirm the accuracy of and report any changes to the staff roster submitted with the initial application.

Update: A full Staff Retention Expenses Award was distributed in the first round. Providers will receive a second Staff Retention Expenses award in the second round.

The employee(s) that meet the criteria will receive their Staff Retention Expenses award payment from the child care facility. Employees are entitled to receive at least some portion of this payment no later than 30 days upon receipt of the award payment to the child care facility. The remaining amount must be received by employees prior to the facility applying to receive the second half of the award.

All staff listed in your application will be verified through your most recent license or registration renewal application or through the DHS data system records. Staff members that are not listed on your most recent license or registration renewal application or found in the DHS data system will be verified through your DHS child care licensing worker.

The applicant must show proof that the Staff Retention Expenses award payouts were distributed appropriately and within the required timeline. Documents shall be uploaded within the application portal (e.g. payroll records, copies of checks, wire transfer copies, etc.) and should be saved for auditing purposes.

Yes. Additionally, if an employee leaves before receiving the entire Staff Retention Expenses award payment (in the case of the employer only distributing a portion of the bonus within the first 30 days of receipt), the applicant must return these funds back to DHS within the next 30 days following the departure of that staff member.

No. The purpose of the Staff Retention Expenses award is to retain current employees of the child care facility. However, staff recruitment efforts such as a signing bonus and advertising are an allowable expense under the ‘Operating Expenses’ category.

Head Start/Early Start programs are not eligible for the Operating Expenses award. However, Head Start/Early Start caregiving staff at eligible programs do qualify for the Staff Retention Expenses award.

These funds are considered taxable income. Employees and applicants should consult with their tax adviser for specifics on filing.

An email will be automatically sent out to you, if you are the designated contact for the child care provider that is eligible for applying, the week of January 1, 2024. You will be directed to use an existing account or create a new account if you do not have one, in order to register and create a profile.

From the profile page, you can click Start an Application in order to begin the application process. You must complete the application in full in order to be eligible to receive payment but may save a draft and complete at a later time prior to submission.

Applications are available online only at this time and a separate application must be submitted for each provider if you are associated with multiple providers.

The following browsers are supported on either your desktop or mobile device:

• Microsoft Edge (based on Chromium)
• Chrome
• Firefox
• Safari

Yes, we support mobile applications.

You will need:

• Your Federal Taxpayer ID Number (TIN) or Social Security Number (SSN)
• A completed W-9
• Copy of your driver’s license or valid government ID

The application will be one per organization/provider. For each provider, you will be able to complete the application for all services underneath that provider.

If you are in the process of completing your application, you may save a draft and complete the application at a later time.

If you need to update information on your application after submitting it, you can send an email to childcaregrants@dhs.hawaii.gov or call our Call Center at (808) 439-6687 for guidance. The Call Center is open from 9:00 AM – 5:30 PM HST Monday through Friday.

If you suspect Fraud, Waste or Abuse please call the below hotline number that applies to you:

• O’ahu: (808) 587-8444
• Hawaii: (808) 933-8899
• Kauai: (808) 241-7106
• Maui County: (808) 243-5840

All eligible providers who are licensed as of December 31, 2022 will be invited to apply. Providers who do not meet this eligibility criteria will not be able to apply at this time. If you believe that you meet the eligibility criteria and should have received this invitation to apply, please send an email to childcaregrants@dhs.hawaii.gov or call our Call Center at (808) 439-6687 for assistance.

The State of Hawaii Department of Human Services will pay a provider based on their licensed capacity levels and service types. The licensed capacity is the maximum number of children that is allowed according to your license certificate. The licensed capacity is multiplied by a per child Operating Expense base award. This calculation will determine your base funding. The list of funding amounts can be found here.

Operating Expenses

Award funds may be used to cover the following operating expenses:

• Personnel costs, including payroll and salaries or similar compensation for an employee, and benefits
• Staff recruitment efforts, such as a signing bonus or advertising expenses, and staff retention efforts, such as an employee bonus (this is separate/in addition to the Staff Retention Expenses category referenced below)
• Rent or payment towards mortgage obligations, utilities, facility maintenance or improvements, or insurance*
• Personal protective equipment, cleaning, and sanitization supplies and services
• Staff training and professional development
• Purchase or updates to equipment and supplies to respond to the COVID-19 public health emergency
• Goods and/or services necessary to maintain or resume child care services, including consultations with nurses or other medical professionals to ensure a healthy environment
• Tuition relief for families
• Tax and business services, such as hiring a tax professional for tax consultation - Update: Funds can also be used to pay GE taxes.
• Mental health support for children and employees

*Because only a percentage of these expenses are used to run a business in your home, Family Child Care providers may only use a percentage of grant funds received for their mortgage, rent, utilities, etc. Providers may use a time/space percentage calculator to determine the number of hours and space the home is used for business activities.

Staff Retention Expenses

Providers can also receive an additional award component for staff retention expenses for all caregiving staff who are employed at the time of application. This funding can be used for:

• Retention bonus
• Fringe benefit offsets (including insurance, retirement, etc.)

This grant is not intended for and may not be used for construction or major renovation of a facility or home. Major renovation means: (1) structural changes to the foundation, roof, floor, exterior or load-bearing walls of a facility, or the extension of a facility to increase its floor area; or (2) extensive alteration of a facility such as to significantly change its function and purpose, even if such renovation does not include any structural change. Improvements to a facility that are not considered major renovations may be considered minor renovations, facility maintenance, or improvements are allowed. If you are unsure if your improvement is allowable, please email us at childcaregrants@dhs.hawaii.gov.

The review process, which includes signing the award letter and agreeing to the terms and conditions is expected to take 30 days. Once the application is processed for approval and the payment is created, applicants can expect to receive their funds between 5-7 working days.

Upon approval of your application, you will be required to sign an award letter. Payment will occur after the signed award letter is received.

The funds must be spent by no later than October 24, 2024. If only a portion of the subgrant is used, the remaining funds are called “unexpended funds”. Grantees must return any unexpended funds to the DHS by November 7, 2024.

Yes, any expenditure records and supporting documentation related to how program funding was spent should be kept. This includes, but is not limited to, the following:

• Mortgage/rent agreements
• Utility statements
• Payroll and benefit records
• Original invoices and/or receipts for purchases
• Documentation of other benefits provided to child care staff members such as tuition reimbursement

Providers need to keep and submit 100% documentation of all spending, including any bonus awards (i.e., retention). This information should be uploaded throughout the grant period in the application portal and a final grant report will need to be submitted by November 14, 2024.

Visit the Additional Resources page to download the Supplemental Child Care Fund Expense Worksheet tool - here . This tool is designed to help providers keep track of expenditures.

Payments will be distributed via direct deposit to the bank listed in the provider’s application. The award letter will include information and award amounts for each service so providers know how to distribute payments accordingly.

Child care providers who comply with funding requirements and certifications will not be required to pay them back. However, any indication that a grantee has failed to comply with the requirements and certifications may be asked to pay back funds and may result in discontinuation of future grant payments.

If only a portion of the subgrant is used, the remaining funds are called “unexpended funds”. Grantees must return any unexpended funds to the DHS by November 7, 2024.

For questions regarding unspent funds, please email childcaregrants@dhs.hawaii.gov. or call our Call Center at 808-439-6687. Any unspent funds must be returned to this address:

Child Care Regulation Program Office
ATTN: Dayna Luka
1010 Richards Street, Suite 512
Honolulu, Hawaii 96813

Please make the check out to: State of Hawaii, Director of Finance

For returned Operating Expenses, please indicate in the MEMO: your provider name and ID.

For returned Retention Expenses, please indicate in the MEMO: your provider name and ID and name(s) of the staff member(s) you are returning the money for.

Unexpended funds will be redistributed to providers after the initial round of payment.

Subgrants must be used towards expenses incurred between October 1, 2023 and October 24, 2024.

These funds are considered taxable income. Please discuss any tax implications with a tax professional. Tax and business services, such as hiring a tax professional for tax consultation, are an allowable operating expense.

Operating Expenses:

1. Rent, Mortgage, or Lease Payments

• Rent, mortgage, or lease payment
• Utility bills (heat, water, electric, internet, phone, garbage service, etc.)
• Business insurance
• Goods and services that are needed to run your business, such as:
  • Payroll or Bookkeeping Software
  • Business automation training and support services (e.g., child care management systems)

• Mortgage/rent/space cost statements
• Utility statements
• Bank statements
• Original invoices and/or receipts for purchases of materials/supplies
• Payroll records/registers

2. Personnel and Professional Development Costs

• Payroll and salaries
• Premium pay (e.g., higher wages provided to employees who work holidays, weekends, nights, vacation days or more than eight hours a day)
• Recruitment incentives (e.g. referral bonus, signing bonus)
• Marketing and advertisement fees for prospective hires
• Recruitment events/job fair attendance
• Staff bonuses
• Wage increases
• Employee benefits (health, dental, vision, insurance)
• Retirement costs and contributions
• Educational costs (professional development, training, scholarships, etc.)
• Child care costs for staff
• Paid sick or family leave
• Work-related transportation costs for employees (e.g., transportation and mileage reimbursement for educational training programs, etc.)
• Support for getting the COVID-19 vaccine (appointments, paid sick leave, transportation, etc.)
• Staff training and professional development

• Payroll and benefit records
• Employee timecards
• Invoices, receipts and check information for professional development trainings
• Documentation of other benefits provided to child care staff members such as overage of insurance costs or tuition reimbursement
• Bank statements
• Payroll records/registers

3. Facility Fees, Maintenance & Minor Improvements

• Business utility bills (heat, electric, phone, Wi-Fi service, etc.)
• Liability and/or accident insurance, transportation insurance, homeowner's insurance, business insurance, etc.
• Late fees or charges from late payments
• Facility maintenance or minor improvements such as:
• Upgrading playgrounds
• Renovating bathrooms
• Installing ramps, railings and other accessibility features
• Removing non-loadbearing walls to create more space for social distancing
• Replacing carpet with linoleum or another easily cleaned surface
• Installing touch-free faucets or light switches

• Mortgage/rent/space cost statements
• Utility statements
• Original invoices and/or receipts for purchases of materials/supplies
• Bank statements
• Proof of purchase documents including invoices, receipts or other sales documents from the vendors
• Proof of payment documents including checks, ACH and wire payments, monthly credit/bank statement records to the vendors and document detail the Description of Expense within the final report

4. Personal protective equipment (PPE)

• Sanitizing wipes, bleach, hand soap, mops, spray bottles, and other cleaning and disinfecting materials
• PPE such as face shields, masks, disposable gloves, and hand sanitizer
• Trainings for yourself or staff on proper cleaning and disinfecting processes
• Hiring cleaning companies, janitors, or any other cleaning service

• Original invoices and/or receipts for purchases of PPE
• Bank statements
• Invoices, receipts and check information for PPE
• Proof of purchase documents including invoices, receipts or other sales documents from the vendors
• Proof of payment documents including checks, ACH and wire payments, monthly credit/bank statement records to the vendors and document detail the Description of Expense within the final report

5. Equipment and supplies related to COVID-19

• Personal protective equipment (gloves, masks, digital thermometers, face shields, changing table paper, etc.)
• Cleaning and sanitation supplies and services (cleaning/disinfecting wipes, ventilation systems, vacuums, washer/dryer, bleach, hand sanitizer, spray bottles, soaps, garbage bags, professional cleaning and sanitation services, independent cleaning services, etc.)
• Training and professional development on health and safety practices (OECOSL-approved trainings on health and safety requirements and best practices, staff time to review and prepare for CDC guidance, etc.)
• Indoor and outdoor equipment and supplies (portable partitions, plastic shields, sink installation, disposable utensils and dishes, COVID-19 signage, storage containers, etc.)
• Business items needed to respond to new challenges (software for no-contact tracking attendance, communicating with parents, etc.)

• Original invoices and/or receipts for purchases of materials/supplies
• Employee timecards
• Invoices, receipts and check information for professional development trainings
• Bank statements
• Proof of purchase documents including invoices, receipts or other sales documents from the vendors, or
• Proof of payment documents including checks, ACH and wire payments to the vendors and document detail the Description of Expense within the final report

6. Goods and Services Necessary To Maintain or Resume Child Care Services

• Food and beverage services for program-provided meals
• Equipment and materials necessary to run a child care business
• Materials for play and learning
• Materials for eating
• Materials for diapering and toileting
• Materials to ensure safe sleep
• Business automation training and support services (e.g., child care management systems)
• Costs for shared services (e.g., Shared Service Alliances)
• Child care management services (online payroll systems, accounting services)
• Transportation services
• Janitorial or cleaning services
• OECOSL-approved trainers for staff

• Original invoices and/or receipts for purchases of materials/supplies
• Bank statements
• Invoices, receipts and check information for professional development trainings
• Proof of purchase documents including invoices, receipts or other sales documents from the vendors, or
• Proof of payment documents including checks, ACH and wire payments to the vendors and document detail the Description of Expense within the final report

7. Mental health and Wellness

• Proof of payment documents including checks, ACH and wire payments to the vendors and document detail the Description of Expense within the final report

• Original invoices and/or receipts for purchases
• Employee timecards
• Invoices, receipts and check information for professional development trainings
• Bank statements
• Proof of purchase documents including invoices, receipts or other sales documents from the vendors, or
• Proof of payment documents including checks, ACH and wire payments to the vendors and note detail the Description of Expense within the final report

8. Tuition Relief

• Cover the application fee
• Pay for a month of a child’s care so that the family does not pay out of pocket; In the case of families receiving DHS subsidy, this may be covering the families’ co-payment

• Keep records of the payments you receive from families for providing child care throughout the year after you receive your grant. If you offer financial relief to enrolled families, document all amounts of fees or tuition that you used grant funding for on behalf of the family(ies)
• You may create a form for the family to fill out to show that their fee or copay has been waived and paid for using your program’s grant funding
• The list of children along with the tuition relief amounts
• Written agreements between the child care provider and the parent
• FCC Providers:  If there is an absence of a written agreement, an attestation from the parents that received the tuition relief must be provided along with following requests: the list of tuition payment statements and the actual tuition rate schedule

9. Tax and Business Services

• Hiring a tax professional for consulting services to understand the tax implications of receiving relief dollars

• Original invoices and/or receipts for consultation services
• Bank statements

Staff Retention Expenses:

• Retention bonus
• Fringe benefit offsets (including insurance, retirement, etc.)

• Payroll and benefit records
• Bank statements
• Payroll records/registers