A simple idea for a complex problem: splitting the cost of child care three ways
Ask a working parent what child care costs and you’ll often hear about a second number, too: the point where it stops making sense to keep working. Many families find a way to pay for one child. A second child often pushes them out of the market. One parent steps back from work, and the local economy loses a worker.
The problem runs on both sides. Quality care is expensive to provide because the work is labor-intensive, staff-to-child ratios are low, and facilities have to be safe. Most providers are small, women-owned businesses running on thin margins, and their teachers earn less than fast food workers in most states. Providers barely survive, many early educators qualify for public assistance themselves, and care is still out of reach for parents.
No single payer can fix that. That's the idea behind Tri-Share.
How Tri-Share works
Tri-Share is a shared responsibility model. Instead of government or a family carrying the full financial load, three partners split it:
- The parent pays a share.
- The employer pays a share.
- A third partner pays a share. Traditionally that's state governments, but a growing number of programs now use a philanthropic partner in that seat.
When costs are shared, a family’s out-of-pocket cost drops sharply, and no single partner carries an unsustainable burden.
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It's tied to work. Only employees of participating businesses are eligible.
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It's usually targeted at the “forgotten middle.” Most programs set an income range. Eligible families typically earn too much to qualify for child care subsidies, but not enough to comfortably afford care on their own.
Who it helps
Tri-Share originated in Michigan and has since been adopted by several states and communities. Rules vary by place, but most programs share two features:
That middle group is easy to overlook. The federal Child Care and Development Block Grant (CCDBG) only serves families below 85% of state median income, and even then, fewer than one in five eligible families receive help. Families just above the line get nothing.
Some newer programs go further, letting employers pay a share for all their employees regardless of income. That approach looks more like the Department of Defense model, where every military family qualifies and fees are set on a sliding scale.
Why employers are paying attention
For employers, Tri-Share is a recruitment and retention tool. It keeps parents in the workforce at a fraction of the cost of running an on-site center. It can also pair with federal tax incentives: Congress recently expanded the employer-provided child care credit (45F) to cover up to 40% of qualifying expenses, or 50% for small businesses.
Tri-Share isn’t the only way to make child care more affordable, and it isn’t meant to be. It’s one tool among many, and it gives:
- parents options,
- employers a stake in the outcome, and
- communities a way to share a cost that no one can carry alone.
