In addition to other federal relief money, Massachusetts received $314 million in child care stabilization funds through the American Rescue Plan Act, according to a brief from the Massachusetts Taxpayers Foundation. States are required to spend 90 percent of the stabilization funds directly on grants to providers. The Department of Early Education and Care partnered with Third Sector Capital Partners to create the C3 formula for its grants, MTF said, and the formula calculates grant amounts based on capacity and staff costs, with an “equity adjustment” for providers serving vulnerable children and communities.