Child Care State Capacity Building Center

Nevada Develops and Awards CARES Act Sustainability Grants

In March 2020, the Governor of Nevada deemed that child care was essential in the state. Child care businesses were unsure of what to do as coronavirus disease 2019 (COVID-19) precautions began. Working in partnership with stakeholders, the state’s Child Care and Development Program (CCDP) developed a policy that allowed the following:

•  Payment based on the previous month’s enrollment. If a child was enrolled in another program due to the closure, the subsidy would be paid to both providers through June 30, 2020.
• Children participating in the subsidy program would not be subject to termination based on the number of days they were absent through June 30, 2020.
• The 12-month redetermination due between March 16 and June 30, 2020, would automatically be renewed for an additional 12 months.
• In-person site visits would be postponed until June 30, 2020.
• Stipends were made available to facilities for COVID-19 related expenses, with a maximum of $1,500 for general supplies, cleaning and safety supplies, child care supplies, and food and food-service supplies.

CARES Act funding provided $32.9 million to Nevada, and CCDP began to develop a grant for child care providers. CCDP conducted a survey asking providers what would be most helpful to them. In response to the survey, the Children’s Cabinet, a subcontractor of CCDP, created a training to address concepts in fiscal and operational management for child care programs. The training was geared toward owners, directors, or members of the management team. The training included the following:

• Module 1. Budgets, Projections, and Planning
• Module 2. Financial Reports and Internal Controls
• Module 3. Marketing for Child Care Programs

Eligible providers for the CARES Act sustainability grant included the following:

• Licensed in-home child care
• Licensed child care centers
• Emergency providers for COVID-19

The notice of funding opportunity and application were released on May 5, 2020, and applications were due by 5:00 p.m. ET on May 29, 2020. Between May 5 and May 22, 2020, the Children’s Cabinet provided both training and technical assistance on a strengthening business plan training. While the training and technical assistance were not mandatory, they were encouraged. Providers were required to attach a completed budget and financial report; an annual budget and “steps to sustainability” plan, including how the grant was to be spent; a marketing plan, including any marketing platforms to be used; and documentation of 3 months’ operating expenses for licensed child care or 1 month of actual operating expenses for emergency child care.

A total of 152 applications were reviewed and scored by a committee. Funds were approved by 149 applicants. On June 22, 2020, CCDP released confirmation of awards to partners. The average grant award for family child care was $25,179; for centers, it was $177,083; and for COVID-19 care, the average was $306,210.

In May 2020, 66 percent of Nevada’s child care providers reported that they were closed. By June 2020, 41 percent reported that they were closed. CCDP feels that the sustainability grants, coupled with the technical assistance and training on business practices, will support the gradual reopening of Nevada’s child care facilities and will help keep the open facilities in operation.

Nevada’s CCDP shared grant information, the application, and a scoring rubric with the Region IX Child Care and Development Fund Administrators. At least one other state is replicating this approach.