Published
June 12, 2025
Where It's Happening
Public-Private Partnerships Fueling Childcare Innovation (2022-2025)
When it comes to childcare, states have been innovating through public-private partnerships (PPPs) that leverage both government support and private-sector leadership. These initiatives bring together employers, government (state or local), and other stakeholders such as non-profits to share the costs and responsibilities of childcare. Below, we spotlight several state programs (in order from those with the most established private-sector involvement to those still in early stages) demonstrating how businesses are co-creating solutions. Each example shows a unique model of cost-sharing or collaboration that has emerged or expanded since 2022.
Michigan
Expanding Tri-Share Childcare Statewide
Michigan’s Tri-Share Childcare program is often referred to as trailblazing in public-private childcare partnerships. Launched as a pilot in 2021, Tri-Share splits an employee’s childcare cost equally among three parties: the employer, the employee, and the state of Michigan. What began with just three regional pilot hubs has rapidly expanded. By early 2023, Tri-Share grew from three to 13 regional hubs, covering 59 of Michigan’s 83 counties (plus the city of Detroit). This expansion was fueled by strong support from both state officials and business advocates, notably the Grand Rapids Chamber, which helped champion the program’s policy design from the outset.
Today, Tri-Share is no longer a small pilot, but a growing statewide program. As of March 2024, 195 employers and 351 childcare providers were participating, helping families care for children through this cost-sharing arrangement. Each participating employer opts in to cover one-third of its employees’ childcare expenses, significantly reducing costs for working parents. The state’s role is to fund the other third and coordinate regional “hub” agencies that administer the program.
Early results are promising. Participating employees saw their out-of-pocket childcare costs drop by an average of 65%, and 82% reported they are more likely to stay in their jobs because of Tri-Share. What’s more, employers across diverse industries, such as manufacturing, healthcare, education, and more, have embraced the model, viewing it as a tangible workforce retention tool.
Michigan’s success has inspired others. The state made Tri-Share a recurring program in its budget, and it aims to reach 5,000 families by 2028 under a planned statewide scale-up. The Grand Rapids Chamber and other business groups continue to back Tri-Share, highlighting it as a win-win: it helps parents work and advance, helps providers by bringing in more paying families, and helps employers retain talent. Michigan’s experience shows that when businesses and government share responsibility for childcare, it’s possible to chip away at the affordability crisis in a sustainable way.
Texas
Investing $84M in Employer-Partnered Childcare Expansion
Everything is bigger in Texas, including investments in childcare capacity. In 2022, Texas launched a major initiative to spur childcare expansion in partnership with employers. The Texas Workforce Commission (TWC) approved $234 million in childcare stimulus funds for a Child Care Expansion Initiative. Most of these funds were used for childcare expansion in coordination with an employer partner. This model encourages businesses to be directly involved in expansion efforts, such as by providing the location, sponsoring slots for their employees, or otherwise collaborating, in exchange for state support to increase local childcare supply.
What does the funding cover? Texas allows these grants to pay for a range of start-up and expansion costs. This includes playground equipment, classroom materials, and staff hiring and training opportunities – all of which help ease the financial burden on providers and employers who venture into new childcare projects.
Texas is extending this initiative using Child Care and Development Fund (CCDF) funding and has approved $25 million for an upcoming Child Care Expansion Initiative. This initiative is still in development, with a procurement to be released in the coming months to select an administering entity. These funds are aimed to support childcare expansion developed in conjunction with employers, or expansion in childcare deserts.
And Texas didn’t stop there. Recognizing that many employers want to help with childcare, but don’t know where to start, the state also set aside $12 million for technical assistance to employers exploring on-site or near-site childcare options. This funding will help businesses conduct needs assessments and develop childcare business plans, essentially giving companies a roadmap and expert support for becoming childcare champions.
By tying public dollars to employer engagement, Texas has created a business-friendly on-ramp for childcare innovation. Early results show strong interest: employers across the state, from hospitals to manufacturers, began partnering with local childcare providers to apply for these grants. Many of the awards targeted childcare deserts (i.e. areas with insufficient supply) and aimed to increase capacity for infants and toddlers, which are often the hardest slots to find.
These efforts demonstrate the impacts of pairing state investment with employer leadership. Looking ahead, TWC will also launch Employer Child Care Solutions, a new initiative offering technical assistance to employers interested in supporting childcare access for their workforce. Once vendor selection wraps in summer 2025, businesses will be able to choose a technical assistance provider to guide them through needs assessments, feasibility studies, and site-based planning.
Iowa
Business Incentive Grants to Tackle Childcare Deserts
Iowa has taken a targeted approach to childcare expansion, zeroing in on its “childcare deserts” through a Child Care Business Incentive Grant Program. In Iowa, childcare deserts are areas where there are more than three children for every licensed childcare slot. According to a 2018 analysis, 252 cities in Iowa meet this definition.
First rolled out in 2022 and expanded with a second round in 2024, this program directly funds employer-led childcare projects. Governor Kim Reynolds and Iowa’s legislature put significant dollars behind the idea that employers can be part of the solution: in early 2022, the state awarded an initial $25 million (across 19 projects) to encourage businesses to create or expand childcare centers for their communities and workforce. Building on that, additional funding was authorized in 2024, leading to a fresh wave of grants announced in January 2025.
Under Iowa’s Child Care Business Incentive (CCBI) Grant, employers (or groups of employers) can apply for funds to build new childcare facilities, add childcare slots, or partner with existing centers to increase capacity. The emphasis has been on infrastructure and start-up costs, for example, renovating a building for a childcare center or expanding an existing center to serve more ages, which can be prohibitive for businesses acting alone. The state essentially acts as a co-investor in these projects, while the employers commit to operating or supporting the centers for their employees once built.
This public-private strategy has yielded concrete results. The latest grant awards totaled $14 million for 46 projects and is expected to create nearly 875 new childcare slots across Iowa. That’s 875 more children who will have a safe place to learn and grow while their parents work.
Some awards went to entirely new on-site corporate childcare centers; others expanded non-profit community childcare centers with dedicated spots for local employees’ kids. Notably, Iowa prioritized projects in areas of high demand and those offering infant care, both critical needs. By requiring a clear business plan and some employer “skin in the game,” the program ensures companies are serious and will follow through. And employers, for their part, have embraced the grants as a workforce investment. As Governor Reynolds put it, “We cannot overstate the importance of childcare to Iowa’s workforce… our strategy for retaining the best workers must include creative ways to meet their childcare needs.”
Iowa’s model shows that with modest public funds and enthusiastic employers, even rural and underserved areas can gain new childcare options.
Kentucky
ECCAP Matching Program: Dollar-for-Dollar Employer Support
Kentucky’s approach to childcare innovation is all about meeting working parents where they are and smoothing the benefits “cliff.” In 2022, Kentucky enacted the Employee Child Care Assistance Partnership (ECCAP) program via bipartisan legislation (HB 499) and rolled it out statewide in July 2023. Unlike other models that create new centers or slots, ECCAP directly helps employees pay for childcare by forging a partnership between employers and the state. The concept is simple: employers who subsidize their employees’ childcare costs will have those contributions matched by the state, dollar-for-dollar up to a certain limit. It’s essentially a 50-50 cost split (or better) that makes childcare more affordable for middle-income families.
Here’s how it works: an employer agrees to offer a childcare benefit – say, a monthly stipend or direct payment to a childcare provider for employees enrolled in the program. There’s no fixed minimum or maximum amount required from the employer; they have flexibility in what they contribute. The state, through Kentucky’s Cabinet for Health and Family Services, then matches that contribution, paying its share directly to the childcare provider.
For lower-income families who are just above the cutoff for Kentucky’s existing childcare subsidy, the state will match up to 100% of the employer’s contribution effectively doubling the benefit. For higher-income families, the match tapers. Even at around 180% of the state median income (~$140K for a family of four), the state still matches 50% of the employer’s contribution. This sliding scale ensures that the greatest help goes to low- and middle-income families, while still involving higher earners so that the program is inclusive and attractive to businesses and no employee has to be left out entirely.
In the first six months, 35 employers signed up, helping cover childcare for 133 children statewide. Kentucky initially committed $15 million to get ECCAP off the ground, and this funding is used to reimburse the matching payments. Notably, the Kentucky Chamber of Commerce played a key role in designing and advocating for ECCAP, emphasizing that employers are actively invested in being part of the solution to the childcare affordability problem.
ECCAP effectively extends the safety net beyond traditional subsidies (which end at ~85% of state median income), catching families who “earn too much” for aid, but still struggle with childcare costs – a group often termed the ALICE population (Asset Limited, Income Constrained, Employed). For businesses, offering ECCAP is a compelling perk: every dollar they put toward an employee’s childcare can be worth two dollars in actual fee reduction. It’s early days, but Kentucky’s match model could be a game-changer in showing how states and employers can split the check to support working parents.
Tennessee
NEW Care: Non-Profit & Employer Partnerships Pilot
Tennessee recognized that expanding childcare access requires not just money, but new partnerships and delivery models. In 2024, the Tennessee Department of Human Services (TDHS) launched the Non-Profit/Employer Workforce (NEW) Care Partnerships Grants, a pilot program that encourages to work with local childcare providers to create solutions tailored to the needs of working families. Backed by a dedicated Child Care Improvement Fund, the state is investing $15 million per year over three years into these partnerships.
The NEW Care pilot initially emphasized collaborations between employers and nonprofit providers, though uptake was limited. Many childcare providers in Tennessee are small, for-profit businesses. Recognizing this, TDHS expanded the eligibility criteria so both for-profit and nonprofit providers can now participate, opening the door to more innovation at the local level.
How does the program work? Employers and providers team up to design and deliver childcare solutions that fit the needs of their workforce. This might mean expanding an existing center, co-locating childcare at a worksite, or underwriting tuition costs for employees at a partner center. Grants can fund facility expansion, staff hiring, and other start-up needs, as long as there is a formal employer partner and a commitment to serving that employers’ employees.
The program explicitly focuses on increasing capacity in childcare deserts and for underserved populations. For example, adding infant and toddler slots, offering extended-hour care for second shift workers, or serving rural communities. The key is a “shared investment”: Tennessee wants private-sector dollars and engagement alongside its public dollars to ensure sustainability. This approach was influenced by earlier successes such as a partnership with Tyson Foods, which TDHS highlighted as an example of employer-sponsored childcare that informed the NEW Care model.
Meanwhile, other efforts are helping to build momentum statewide. Local chambers like Chattanooga’s are promoting models like micro-centers embedded within businesses, funded through separate TDHS initiatives. Community leaders have also launched efforts like the Quality Matters Fund, while statewide coalitions such as the TN Skills Coalition continue to elevate childcare as a workforce priority.
While outcomes are still forthcoming, Tennessee’s approach reflects a larger shift: supporting employers in becoming long-term partners in solving the childcare crisis – with public funding designed to seed, not fully sustain, these projects over time.
Wisconsin
Partner Up! Cost-Sharing for Employee Childcare Slots
Wisconsin’s Partner Up! program is another pioneering effort that ran from 2022 through 2024 to connect employers with childcare in a mutually beneficial way. Administered by the Wisconsin Department of Children and Families (DCF) as part of the broader Project Growth Initiative, Partner Up provided funding to help employers purchase childcare “slots” (full-time enrollment) at existing regulated childcare providers for their employees’ children. In essence, this program treated childcare slots as a commodity that businesses could buy (or reserve) for their workers, with the state subsidizing a large portion of the cost to encourage widespread participation.
Through Partner Up, an employer could apply for a certain number of childcare “slots” at a local childcare center or preschool, and if approved, the state would cover the majority of the tuition for those enrollments for a year. Businesses were required to contribute at least 25% of the true cost of care for each slot (the share goes up to 35% in a second year), and parents would pay 10% of the cost as a copay. The state funding picked up the rest, typically around 65% of the childcare cost in the first year for new partner employers. Notably, an employer could choose to cover the parent’s 10% portion as well, in which case the employer would pay 35% and the state 65% from the start. This cost-sharing arrangement meant that a family could access high-quality childcare at a fraction of the normal price, the employer could offer a valuable benefit at a modest expense, and the childcare provider received stable funding for the slot. It’s a three-way win designed to support working parents, bolster childcare businesses, and help employers attract and retain workers.
The response in Wisconsin was strong. In the first round of grants in 2022, 88 businesses across the state were awarded Partner Up! Funds. These employers ranged from hospitals and manufacturers to small retail companies, showing broad appeal. Each participating business got a certain number of childcare slots reserved. For example, a healthcare facility might secure 10 infant slots and 10 toddler slots at a nearby childcare center for its employees. DCF allocated a total of $10 million in that round to cover the state’s share of costs. For example, Western Wisconsin Health (a hospital) received funding for 42 childcare slots benefitting 26 staff members, with the state covering 65% of the cost, the employer 25%, and employees 10%. This allowed those health workers to obtain affordable care, likely keeping parents in the workforce who might otherwise have reduced hours or quit due to childcare issues.
By mid-2023, Wisconsin signaled that Partner Up had fulfilled its initial purpose and was winding down. However, the impact of the program is evident through the partnerships it created. Many employers, having seen the difference in employee attendance and morale, are looking to continue subsidizing childcare even without the state subsidy. And the concept lives on as a model: other states are studying Wisconsin’s approach to effectively broker deals between employers and childcare providers.
Partner Up demonstrated that even in a tight labor market, relatively small employer contributions (25% of cost) can be leveraged with public funds to make childcare feasible. As one Wisconsin official put it, childcare “is the work that allows all other work,” and programs like this help ensure that work can continue.
North Dakota
Matching Infant Care Support for Working Parents
North Dakota, faced with a severe shortage of infant care and a workforce crunch, turned to public-private partnership in 2023 with its Working Parents Child Care Relief (WPCCR) pilot program. This initiative is laser-focused on helping families with children younger than 3 by encouraging employers to provide childcare benefits and having the state match those benefits. Governor Doug Burgum’s administration and state lawmakers crafted WPCCR as a shared investment: if an employer is willing to put money toward an employee’s infant or toddler care, the state will chip in an equal amount.
The specifics: an employer must commit at least $300 per month, per child (infant or toddler) for an employee’s childcare costs. The state then provides a matching contribution of $300 per month for that child, effectively doubling the subsidy for the family. There’s also a tier for a lower contribution: some employers might opt in at $150/month, matched by $150 from the state, for a smaller benefit. This money goes directly toward paying the licensed childcare provider. To target the help, North Dakota set an income cap for participating families – initially households up to 100% of the state median income qualify (for a family of three, that’s about $7,495/month in ND). The pilot will run through September 2026 or until the dedicated funds are used up.
North Dakota’s program says to employers: “If you’re willing to invest in childcare for your employees, we’ll match you dollar for dollar.” It lowers the barrier for companies to offer such a benefit, since a $300/month outlay from the business unlocks an additional $300 in value for the employee.
Early anecdotal evidence suggests employers see this as a way to distinguish themselves in hiring, especially in sectors like healthcare and manufacturing where 24/7 staffing is critical and many employees have young kids. State leaders tout the program as a way to keep parents in the workforce during the challenging early-childhood years. “This is when families face the greatest economic pressure and make critical decisions about how and if to rejoin the workforce,” said Jessica Thomasson, a North Dakota human services executive. By easing childcare costs for those with infants and toddlers, WPCCR aims to prevent skilled workers from dropping out after parental leave.
It's too soon for participation numbers, but outreach is underway. A number of North Dakota employers including in the energy and tech industries have expressed interest, and take-up is expected to grow once companies budget for the benefit. If the pilot succeeds, it could be a template for a permanent program. For now, it’s a bold example of a state providing a matching grant to any employer that helps pay for childcare with no complex RFP or grant process needed, just a straightforward match. That simplicity could be the key to its success.
Indiana (Noble County)
Local Tri-Share Pilot Breaking New Ground
Public-private childcare partnerships aren’t just the domain of state governments — they can start at the local level too. In Indiana, where a statewide program hasn’t yet materialized, largely rural Noble County took matters into its own hands. In late 2022, Noble County’s Board of Commissioners voted to appropriate $50,000 in county economic development funds to launch a Tri-Share Child Care pilot, making it likely the first county-led Tri-Share model in the nation and certainly in Indiana. Modeled closely on Michigan’s Tri-Share, the Noble County program splits childcare costs three ways: one-third paid by the employer, one-third by the employee, and one-third by a public entity – in this case, the county government. By January 2023, funding was in place and the program was up and running.
The local pilot was spearheaded by Thrive by 5, a regional early childhood coalition, after they heard employers asking for solutions to the childcare shortage. The initial plan anticipated the $50,000 county investment could support 15 to 25 children for about a year by covering the county’s one-third share of those families’ childcare costs. A local bank quickly stepped up as one of the first participating employers, willing to subsidize a portion of care for 15 children (its one-third share), with the county and parents covering the rest. This enthusiasm underscored the demand: employers were saying, “We have a problem with childcare, and were ready to be part of the solution.”
Launching the pilot revealed some challenges. For instance, eligibility criteria (such as an income cap at 300% of the poverty level and residency in the county) initially disqualified several employees at that first interested business. The program coordinators adjusted their outreach strategy, recruiting more employers and tweaking requirements to ensure the funds could be utilized by local families in need. Despite a few bumps, Noble County’s Tri-Share has persisted and served as a proof of concept that even a rural county can implement a complex cost-sharing program. After a full year in operation, interest from other Indiana counties and even state officials grows, and they’re watching Noble County to see if this could be scaled or replicated elsewhere.
The importance of Noble County’s experiment lies in its grassroots innovation. It didn’t wait for a state law or large appropriation; it used local dollars and local leadership to get started. Employers in the community, from small businesses to the local hospital, have been engaged. If successful, it could pave the way for Indiana to adopt a broader Tri-Share or similar PPP model. At the very least, it’s providing immediate relief to familiesand giving employers in Noble County a new tool to support their workforce. In the broader childcare puzzle, Noble County reminds us that solutions can start small and local.
New York
Piloting Employer-Supported Childcare for Moderate-Income Families
New York State has also thrown its hat in the ring by funding a new Employer-Supported Child Care pilot program in 2023. With a budget appropriation of $4.8 million, this pilot is New York’s tailored take on the Tri-Share concept, aimed at families who don’t qualify for traditional subsidies, but still struggle with childcare costs. The program, approved in the FY2024 state budget, will serve families with incomes between 85% and 100% of the State Median Income (SMI) in three regions of the state. For context, that income band captures many middle-class families who often fall through the cracks of support programs.
In New York’s model, employers, families, and the state will each contribute toward the cost of care. The plan calls for employers to pay about one-third of the childcare cost, and the state to match that employer contribution, effectively doubling the employer’s money and covering roughly two-thirds of the tuition. The remaining portion (around one-third) would be the responsibility of the family, presumably through an affordable copayment.
By having employers invest in childcare for workers in this income range, the state aims to generate “millions of dollars in new financial support for childcare” that didn’t exist before. It’s a way to stretch public funds by drawing in private dollars and also to get buy-in from businesses that have a stake in employee stability.
The pilot will be facilitated by local Child Care Resource & Referral agencies (CCR&Rs), which will coordinate between businesses, childcare providers, and families, a role they are well-suited for as community connectors. While we’re still waiting on full participation data, early signs point to growing interest from employers, and the program’s design reflects lessons from other states. New York officials noted they learned from Michigan’s experience, adjusting for their context. For example, New York set a narrower income window (85-100% SMI) to target those just above subsidy eligibility, and they jump-started the concept with a healthy funding amount (Michigan’s pilot started with just $1.1M, by comparison).
As of 2025, New York’s employer-supported childcare pilot is operational in the three regions, and the FY2024 budget allocated $1 million for a “business navigator” initiative to help employers identify childcare supports. Given this context, this pilot comes at the right time. If this employer-supported model proves successful, it stands as a significant investment in public-private cost sharing to help moderate-income working families in New York, indicating that even in a state with robust public programs, the private sector is being called upon to play a role in childcare affordability.
North Carolina
Planning a Tri-Share Pilot with Smart Start
Rounding out our tour is North Carolina, which officially launched its Tri-Share pilot in 2024, and as of early 2025, implementation is now underway across three local communities. The initiative, backed by $900,000 in state funding over two years, builds on the model first introduced in Michigan, where the cost of childcare is shared between the state, participating employers, and working families.
The program is being led by the North Carolina Partnership for Children (NCPC), the organization behind Smart Start, in collaboration with the state’s Division of Child Development and Early Education. Each community operates through a local Smart Start hub, which is responsible for engaging employers and identifying providers. The state’s portion helps cover administrative costs and a third of the childcare expenses, while employers contribute their share to support eligible employees.
Leading up to the launch, North Carolina leaders spent time studying Michigan’s rollout, including visiting in fall 2023 to gather lessons learned. One clear takeaway: business buy-in is key. That’s why chambers and major employers have been involved early in the process. A few larger companies have already stepped up in the pilot counties, and so far, interest seems strong.
It’s still early days, but this marks a big step forward. The program will run through 2026 before being formally evaluated, and the goal is to learn what’s working, and what might need adjusting, before expanding further. Just a few years ago, the idea of splitting childcare costs three ways was brand new. Now, North Carolina is one of several states testing what that could look like in practice. With Smart Start’s deep community relationships and flexible local leadership, the state is well-positioned to adapt this model to meet real workforce needs.
Comparing State Public-Private Childcare Partnership Initiatives (2022-2025)
The following table provides a quick comparison of the featured state examples in this report, including their launch timelines, how costs are split between employers and government, and the scope of their impact. (These correspond to the states highlighted on the map graphic).
States Continue to Lead on Childcare Innovation
A growing number of chambers of commerce and employers nationwide are stepping up to partner on solutions. We’re seeing thoughtful and exciting momentum in public-private partnerships that make childcare more accessible and affordable for working families.
