Purpose: Alternative routes to teacher certification, such as California's Intern Program, have increasingly gained support in the past decade. A significant and growing percentage of all new teachers, close to 30% in California, now enter classrooms through alternative paths and are considered highly qualified under No Child Left Behind. This research examines program designs and market strategies resulting from the subsidies provided to public and private intern programs in California. Research Design: This research is a conceptual analysis of qualitative data from 11 case studies. Findings: Intern programs are created by combining financial subsidies and regulations. An economic theory of subsidized and regulated service provision explains variations in program design and implementation. California's policy framework produces four distinct intern program designs that depend on program operators' response to two questions: (a) whether priority goes to serving school districts seeking teachers or to candidates seeking preferred training opportunities and (b) whether programs build on traditional teacher training or seek to substantially alter the nature of credential training. Case data indicate that answering these questions depends on whether public or private teaching colleges and universities, local school districts and county offices of education, or elite research universities are operating the programs. Conclusions: Four distinct training program designs have emerged from the intersection of California regulations and subsidies with the priorities, capacities, and interests of training providers. This study provides guidance regarding what can be expected to happen when service providers adapt state goals, regulations, and subsidies to local conditions to develop training programs. (Contains 2 notes, 1 table, and 1 figure.)