COEUR d’ALENE — Children’s Village still has a chance to receive the $291,000 in federal COVID-19 rescue funds that were approved by Kootenai County last year.

After legal counsel for the county determined Children’s Village was ineligible to receive American Rescue Plan Act funds under the two categories for which it applied, county officials agreed Tuesday to work with the nonprofit on a new application.

“I want to applaud the grant team because they have a really hard job,” Children’s Village CEO Vanessa Moos said Tuesday. “I’m grateful we have more time to produce the reports the county needs and I appreciate that they’re willing to work with us.”

Last June, commissioners approved the projects recommended by the Kootenai County ARPA Task Force, including $291,000 for premium pay for non-executive staff at Children’s Village.

The funds would be used to increase wages for staff, including child care providers, by 25% for a period of two years. Children’s Village raised wages after commissioners green-lit the project, counting on reimbursement through ARPA funds. For the average caretaker who was paid $15 per hour, the increase amount to an additional $3.75 per hour.

Before providing any reimbursement, the county’s Resource Management Office and legal counsel had to collect certain documentation from all prospective subrecipients, then get final approval from commissioners.

In August, Children’s Village learned that a change in federal guidelines had affected its eligibility. The U.S. Treasury had declared that ARPA funds can only be expended for premium pay for work performed prior to April 10 of this year, the date Congress declared the COVID-19 national public emergency to be ended.

Because Children’s Village had not yet completed a subaward agreement with Kootenai County, the nonprofit was no longer eligible for a subaward under the premium pay project category.

Children’s Village prepared additional documentation and submitted another application.

But, after analysis from the county’s legal counsel, the Resource Management Office determined Children’s Village was ineligible because it could not show sufficient negative economic impact.

“I stand by that analysis and conclusion, but that’s not necessarily the end of the world for Children’s Village in terms of receiving ARPA funds,” said attorney Pat Braden.

Braden suggested Children’s Village may be eligible to receive funds under a different category. County officials agreed Tuesday to work with Children’s Village to determine what category might apply and what documentation is needed.

“Children’s Village is, without question, a worthy organization,” Kootenai County Clerk Jennifer Locke said Tuesday.