This policy brief of the Southeastern Regional Vision for Education (SERVE) provides information for policymakers, educators, parents, and citizens on the Personal Responsibility and Work Opportunity Reconciliation Act. The brief discusses potential effects of welfare reform on children, describes research on welfare recipients and their children, gives examples of welfare reform, and suggests strategies and recommendations for welfare reform. The paper begins with a rationale for providing government assistance to families and provides a brief history of such assistance in the United States. This part describes the stipulations of the Personal Responsibility and Work Opportunity Reconciliation Act and discusses the complementary goals of enhancing workforce development and child development. Research findings on child care and self-sufficiency, the importance of child care quality, maternal employment, effects of work conditions, and benefit levels are presented. The report next describes challenges to states, including limited number of jobs suitable for welfare recipients, lack of child care slots, and eligibility for child care assistance. Welfare reform programs in North Carolina and Florida are described and information on additional legislative activity related to welfare reform is presented. The report then presents implications of welfare reform for early childhood care and education. Emerging trends in welfare reform are discussed, including a strong work commitment, emphasis on personal responsibility, welfare avoidance, reinvestment of welfare savings in prevention activities and supports for working families, income-based support systems for child care and health care, and employer outreach, involvement, and commitment. The report concludes with recommendations for local community action and for policymakers. (Contains 22 references.) (KB)