Tri-Share Childcare Models:
A Collaborative Solution for Indiana Families and Employers
Across the nation, communities are exploring employer-supported childcare models as one strategy to address rising tuition costs for working families. One approach receiving increased attention is the Tri-Share model, which divides the cost of childcare among three contributors: the family, their employer and a third funding source such as philanthropy, state funding or local economic development investment.
How Tri-Share Models Work
A well-known Tri-Share model was launched in Michigan through MI Tri-Share, a state-sponsored pilot designed to help families that earn too much to qualify for public assistance but still struggle to afford licensed care.
Under the program, participating employers agree to cover a portion of an employee’s childcare costs while the state helps offset the remaining balance.
Early implementation data from Michigan showed strong employer interest, particularly in industries experiencing workforce shortages, including manufacturing, health care and service sectors.
Potential Benefits and Challenges
Some data suggest that Tri-Share models may help some employers support workforce recruitment and retention while reducing childcare costs for participating families.
However, communities implementing these models have also identified challenges related to:
- Administrative coordination
- Employer participation
- Long-term funding sustainability
Because many Tri-Share initiatives are still relatively new, there is limited long-term research on their scalability or impact on broader childcare access and supply.
Indiana Communities Exploring Tri-Share
Indiana communities are exploring similar approaches through regional partnerships. In Northeast Indiana, the Northeast Indiana Early Childhood Coalition launched theTri-Share+ initiative with nearly $5 million in funding from The Northeast Indiana Strategic Development Commission.
The program works with employers and families across multiple counties to reduce out-of-pocket tuition costs while testing whether employer participation can help stabilize workforce retention and attendance.
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Getting Started With a Tri-Share Strategy
Communities considering Tri-Share often start by identifying industries where childcare disruptions are affecting workforce participation the most.
Local chambers, economic development organizations and early childhood coalitions can help:
- Assess employer interest
- Determine potential funding partners
- Identify whether enough licensed childcare capacity exists to support participating families
In some regions, communities have found that strengthening provider capacity, increasing childcare supply or investing in shared services networks may need to happen before employer subsidy models can succeed.
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Considerations as Communities Explore Opportunities
- Partner with local employers to identify workforce sectors most affected by childcare challenges.
- Conduct feasibility studies to inform the launch of an employer cost-sharing program.
- Coordinate with economic development organizations and chambers of commerce to recruit employer participation.
- Explore braided funding strategies using grants, philanthropy or workforce investments.
- Assess whether the community has enough licensed childcare capacity before expanding affordability programs.
A Collaborative Approach to Strengthening Childcare Access
Implementation experiences across states suggest Tri-Share programs work best when they are part of a broader community strategy. As Indiana communities continue exploring employer-supported childcare strategies, their learnings may offer a useful model for helping some Hoosier families access more affordable care.