A revolutionary cost-sharing model that makes quality child care affordable by splitting costs three ways
Tri-Share child care is an innovative cost-sharing model where the expense of child care is divided equally among three parties: the employer, the employee, and a third-party funder (typically state or local government). Each party contributes approximately one-third of the total child care cost, making quality child care significantly more affordable for working families while creating a sustainable funding mechanism.
Consider a family paying $1,200 per month for child careโa common cost in many U.S. markets. Under a tri-share program:
| Party | Monthly Contribution | Annual Cost |
|---|---|---|
| Employer | $400 | $4,800 |
| Employee | $400 | $4,800 |
| Government/Grant | $400 | $4,800 |
| Total Child Care Cost | $1,200 | $14,400 |
Without tri-share, this family would pay the full $14,400 annually. With tri-share, their out-of-pocket cost drops to just $4,800 per yearโa savings of $9,600.
The tri-share model originated in Michigan in 2021, developed by the Michigan Women's Commission in partnership with regional prosperity organizations. The pilot program launched in the Muskegon area and quickly demonstrated success in helping families access affordable child care while supporting employer workforce retention.
Following Michigan's success, the model has spread to over a dozen states including North Carolina, Kentucky, Indiana, Ohio, Missouri, and Texas. Each state has adapted the model to fit local needs and funding structures, but the core principle remains the same: shared responsibility creates shared benefits.
Michigan launches first tri-share pilot in Muskegon region
North Carolina and Kentucky adopt tri-share models
Indiana, Ohio, and multiple states launch programs
Texas, Missouri, Virginia, and others join the movement
While eligibility varies by state and program, most tri-share programs share common requirements:
| Requirement | Typical Criteria |
|---|---|
| Income Level | 200-300% of Federal Poverty Level (varies by state) |
| Employment | Must work for a participating employer |
| Child Age | Typically birth through age 12 (or 18 for special needs) |
| Child Care Provider | Must use a licensed, participating provider |
| Residency | Must reside in participating region/state |
Traditional child care subsidies typically come solely from government sources and are available only to very low-income families. Tri-share expands access to middle-income families (often called the "benefits cliff" population) by bringing employers into the funding equation. This three-way split makes the program sustainable and reaches families who earn too much for subsidies but still struggle with child care costs.
Most tri-share programs welcome employers of all sizes, from small businesses to large corporations. Employers must agree to contribute their share (typically one-third of costs) and work with the program administrator. Some programs offer additional support for small businesses. Contact your state's program administrator to learn about employer enrollment.
If your state doesn't have an active tri-share program, you have options. Employers can implement a duo-share program where the employer and employee split costs without government funding. Additionally, many states offer tax credits, grants, or other incentives for employer-sponsored child care. Check your state's page for available alternatives.
The application process varies by state, but generally: (1) Your employer must first enroll in the program, (2) You complete an employee application with income verification, (3) You select a participating child care provider, (4) Once approved, payments begin with each party contributing their share. Visit your state's program page for specific application instructions.
In most cases, employer contributions to child care benefits are tax-advantaged. Under IRS rules, employer-provided dependent care assistance up to $5,000 annually is excluded from employee income. Employers can also deduct their contributions as a business expense. Consult with a tax professional for your specific situation.
Find out if there's a program in your state or learn how to start one.