This report defines policy and practices for child care assistance for welfare recipients in New York, and explores ways in which the state could use the newly enacted federal welfare reform legislation to create opportunities for children of welfare recipients. The six sections of the report are based on a survey of child care policies and practices at state, county, and city levels. Provided are: (1) a brief look at the child care components of two widely discussed welfare-to-work programs, the Employment and Training Choices Program in Massachusetts and the Greater Avenues to Independence Program in California; (2) a description of current employment, training, and child care policies in New York; (3) a review of results of surveys and interviews that provides a description of child care for welfare recipients in New York; (4) an overview of federal and state funding, regulation, and law governing provision of child care to welfare recipients; (5) a detailed look at the provisions of the newly enacted Family Support Act of 1988; and (6) recommendations for ways in which the state can implement the new federal law. A table of selected child care expenditures by county, and details of the survey methodology, are appended. (RH)