When policymakers, employers and advocates talk about making child care more affordable, the conversation fills up with shorthand fast. Is a program targeted or universal? Who pays the co-pay? What is a shared responsibility model?
These terms aren't jargon. They describe real choices bout who gets help, how much families pay, and who shares the cost.
This guide defines the terms you'll hear most often.
Who Is Eligible
Targeted. Support is limited to certain families based on factors such as income, work status, or living situation (for example, families experiencing homelessness). Targeted support is usually free or carries only a small co-pay.
- Example: the federal Child Care and Development Block Grant, which serves families earning less than 85% of state median income.
Universal. Support is available to all families, regardless of income or other conditions. Universal does not necessarily mean free.
- Example: the Department of Defense child care system, where every military family qualifies and fees are set on a sliding scale by income.
What Families Pay
Free. The family pays nothing out of pocket. Free care is most common in targeted programs, though some universal programs are also free.
- Example: New Mexico, which in November 2025 became the first state to offer no-cost child care to all families.
Co-pay. A set fee a family pays toward the cost of care. Co-pays are typically part of targeted programs.
- Example: under CCDBG, a family's co-pay cannot exceed 7% of its income.
Who Shares the Cost
Shared responsibility. A model in which the cost of care is split among multiple parties (usually two or three) instead of falling on one payer alone.
Tri-Share. The most common shared responsibility model. The cost is split three ways: among parents, employers and, typically, government. A growing number of Tri-Share programs use a philanthropic partner in place of government as the third payer.
Why These Distinctions Matter
Every financing model is a trade-off.
- Targeted programs direct limited dollars to the families who need help most, but they can leave out families just above the income line.
- Universal programs reach everyone but cost more.
- Shared models spread the cost but depend on employers choosing to participate.
There is no single right answer. Different communities, employers, and families will need different approaches.
What every model has in common is some form of public investment. Families can't close the gap between what care costs to provide and what they can afford to pay on their own.
