Government makes subsidies directly available to institutions of higher education as well as entities that build and support transportation systems and housing projects, hospitals, and other health care institutions. These subsidies are designed to support the basic infrastructure, so that services are available to families in many locations. In addition to direct support, each of the fields has developed a system of portable subsidies that are made available to help families purchase the services they need. These portable subsidies are often, but not always, targeted to low and moderate income families. Portable subsidies may be offered in the form of tax credits, vouchers, scholarships, subsidized loans, and other devises.
Many approaches can be effective.
Combining institutional or program support with subsidies to families makes it possible to include family fees in the financing system. Base funding to programs ensures that high quality services are available and that user fees are reasonable. Portable subsidies to families ensure that low and moderate income families can afford to purchase the service. Combining the two ensures that families are able to select the most appropriate services from a range of options and that the services are responsive to the needs of consumers. Providing direct support to many small practitioners can be a challenge.