Opportunities to Invest State and Local Fiscal Recovery Funds in Prenatal to Three

Arabella Pluta-Ehlers | September 15, 2021

Authorized under the American Rescue Plan Act of 2021, the State and Local Fiscal Recovery Fund (SLFRF) is providing counties with an unprecedented $65.1 billion in direct, flexible funding to cover increased expenditures, replenish lost revenue and mitigate economic harm from the COVID-19 pandemic. These new resources represent an opportunity for counties to build on our unique role in not only providing services that support families, but in leading COVID-19 recovery efforts and creating systems and policies that help children prenatal to three (PN-3) thrive.

As of September 2021, many counties are still deciding how to allocate their first tranche of the SLFRF. Whether your county has approved a plan, proposed spending priorities or not yet begun allocating the funds, there are opportunities to connect with county leaders and local stakeholders to make the case for investing SLFRF allocations in PN-3. The spending strategies below reflect NACo analysis of the U.S. Department of Treasury’s Interim Final Rule and examples from counties across the country.

+ Direct grants to non-profits that serve young children and families.

Local governments may subgrant SLFRF funds to non-profit organizations. Particularly for smaller counties who may be stretched for capacity, granting funds to non-profits can help connect families and children to services more quickly. Learn more about granting to non-profits here.

Nevada County, Calif.: This small county is allocating $2 million of SLFRF funds to the Community Benefit Grants Program, which will give grants to community-serving institutions and organizations. Organizations serving families, seniors or the community at large are eligible to apply. Grants will be up to $100,000.
Dutchess County, N.Y.: Through the Learn, Play, Create initiative, the county will award grants to non-profit youth organizations that directly serve children and families, including libraries and athletics and arts organizations. Grants can be used to enhance program offerings and make them more accessible for families.

+ Direct grants to child care providers.

Child care providers have struggled during COVID-19, with many providers temporarily or permanently closing. Between changes in enrollment and increased costs associated with COVID-19 safety protocols, many providers are financially strained. Counties of all sizes are providing grants to child care providers to help retain employees, build or maintain child care capacity and make COVID-19 related facilities improvements.

Jefferson County, Mont.: In response to increased child care demands during the pandemic, the county has allocated $100,000 to support licensed child care providers with sustainment of existing facilities and supporting new programs throughout the county.
Hamilton County, Ohio: As part of its workforce development strategy, the county is working with local and regional experts to determine the best use of SLFRF to expand provider capacity and provide an on-ramp for parents reentering the workforce.
San Diego County, Calif.: The county approved $16 million for child care services, an increase over the original $10 million they considered. The money will cover child care grants and vouchers and training programs to increase San Diego’s child care workforce. See the full proposal here.

+ Leverage premium pay and workforce development flexibilities to support the child care workforce.

Local governments may use SLFRF funds for workforce development if the sector has experienced negative economic impacts as a result of the pandemic. The child care workforce is eligible for premium pay and assistance, including job training and subsidized employment.

Lewis County, N.Y.: In partnership with the Lewis County Childcare Development Initiative, the county is exploring funding a program that would train people to open regulated, home-based child care.
In partnership with the Wisconsin Early Childhood Association, several counties in Wisconsin are exploring offering retention and signing bonuses to retain and incentivize child care workers, directors and administrators.

+ Provide direct assistance to families and households, including child care assistance.

Counties can provide direct assistance to households to alleviate the negative economic impacts of COVID-19 including proportionate cash assistance, aid to unemployed workers and food assistance. Explore additional allowable types of assistance here.

Multnomah County, Ore.: The county has allocated $625,000 of its funds to pilot the Multnomah Mothers’ Trust Project (MMTP) to address long standing racial and economic injustices that have been exacerbated by the pandemic. MMTP will provide a guaranteed basic income to approximately 100 Black female-headed households with children. This pilot will inform the implementation of future asset building programs.

Data shows that parents – particularly mothers – may struggle to reenter the workforce if they cannot access or afford child care. Counties are using SLFRF funds to provide vouchers or scholarships to parents who are essential workers or who are seeking employment or pursuing education or training. Counties can also help cover child care costs for parents who earn slightly too much to qualify for other subsidies.

Oakland County, Mich.: Oakland County will provide $1,200 child care scholarships to eligible households to support child care costs including co-pays, applications fees, and direct care costs. Families under 300% of the U.S. federal poverty guidelines or who meet Oakland County Michigan Works! Agency’s guidelines are eligible.
Snohomish County, Wash.: The county has allocated $4.6 million to continue providing early learning supports and child care services and provide vouchers to family members who need child care while seeking employment. These vouchers could be used at any licensed facility. The county has allocated an additional $655,500 to cover child care costs for essential workers.

+ Replace public sector revenue loss.

Unlike CARES funding, SLFRF funding can be used to replace lost revenue. These funds can then be used to provide any services the county government typically provides, including educational, health or human services. Calculate your county's list revenue here.

+ Convene experts to inform planning.

While counties are dealing with many urgent needs, SLFRF presents a chance to bring together stakeholder groups to better understand current needs, existing programs and future goals for young children in your county.

New Castle County, Del.: The county created an Early Learning Task Force to ensure funding plans meet the needs of young children and their families. The committee is comprised of county elected officials and early childhood leaders and experts from the community.

In communities that were disproportionately impacted by COVID-19, an even broader range of services are allowable. Specifically, Treasury will presume that certain types of services are eligible uses when provided in a Qualified Census Tract (QCT). In addition to QCTs, Treasury has given counties some flexibility in determining which populations have been disproportionately impacted by the public health crisis. Within these communities, counties are developing strategies to:

+ Connect residents to public benefits and services.

Funds can be used to support navigators who will help residents access resources and apply for public benefits or services. Counties can also use funds to support outreach initiatives aiming to increase the uptake of federal assistance services and programs, such as the newly expanded Child Tax Credit.

Stanislaus County, Calif.: The county is investing $5 million to help residents connect to local, state and federal programs that meet basic needs and support self-sufficiency. The county will contract to local community-based organizations and family resource centers to provide residents with information and navigation and case management services.
Skagit County, Wash.: During COVID-19, Help Me Grow Washington worked with partners in Skagit County to develop a family resource center, housed at a local children’s museum. The county has allocated funding to the center to continue to connect families with young children to resources and benefits.

+ Provide home visiting services to new parents.

Counties can invest in home visiting programs that provide new parents with education or assistance with economic support, health needs or child development. Home visiting programs can also help families connect to county resources.

Travis County, Texas: In partnership with the City of Austin, Travis County has allocated SLFRF funds to support parents and children through child care, home visiting and workforce development services. Through the United Way of Greater Austin, the county will provide free home visits to 2,000 families with newborns.

+ Fund children's mental health services and programs.

Counties can invest in mental and behavioral health supports in both schools and community-based settings, particularly to serve children experiencing trauma exacerbated by the pandemic.

New Hanover County, N.C.: The county will spend $891,994 to provide two years of recovery-related mental health services for families with infants and toddlers through five county staff positions at Health and Human Services.

Have questions about your county’s SLFRF plan, or want to share how your county is leveraging SLFRF funds for infants and toddlers? Email info@countiesforkids.org and visit the NACo COVID-19 Recovery Clearinghouse.