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Accounting for the Fall 2021 Child Care Relief Funds (aka Child Care Sustainability Grant)

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Beginning the week of January 10, 2022, districts that applied and were approved for Fall 2021 Child Care Relief Funds began receiving these grant payments. Additional grant award amounts will be received in March 2022 if reporting requirements are met. These additional child care grants are funded by the federal American Rescue Plan (ARP) Act. Revenue should be recorded under Major Class 414, Suffix 0250, and expenditures should use Grant Code 701.

Similar to other recent child care funds, Child Care Stabilization subgrants included in the ARP Act are benefits to a child care provider and are considered payments made to beneficiaries of a federal program, which is the same as with child care subsidies under the voucher program. Providers receiving stabilization subgrants are not categorized as “sub-recipients” as defined at 45 CFR 75.2.

Additional information on this program including application and reporting requirements may be accessed at Questions may be directed the Office of Child Development and Care at 866-990-3227 x2 or the Great Start to Quality Resource Center at 877-614-7328.


Resource: Michigan Department of Education, Office of Financial Management, Financial Accounting Guidance During the COVIC-19 Pandemic, Last Updated January 21, 2022

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