The Family Support Act (FSA) of 1988 is the result of congressional efforts to restructure the nation's welfare system. This report examines the impact of the FSA on state programs that serve pregnant, parenting, and high-risk teenagers. The objective of FSA is to help families started by teen mothers and other welfare recipients make a transition to full-time employment. Several provisions affect state programs and recipients, including: (1) replacement of traditional eligibility requirements with mandatory education, job training, and work activities; (2) provision to states of the option to require that pregnant or parenting teens live with a parent or guardian; (3) establishment of a Teen Care Plan by means of which states will provide counseling to improve the self-image of high-risk teens; and (4) the requirement that states provide services to ease the transition to self-sufficiency. In order to receive federal funds, states must establish education and job training programs for three target populations of at-risk families. Several states have already undertaken welfare reform efforts. A checklist for potential state legislative activity and a short reference list are appended. (BC)