This document details the 2-year results of the New Hope Project, which was conducted in Milwaukee, Wisconsin, to reduce poverty, reform welfare, and improve the overall well-being of poor people by providing a mix of incentives and services, including supplemental income, child care subsidies, guaranteed affordable health insurance, and wage-paying "community service jobs." Following a lengthy executive summary, the document details the following: New Hope's policy context, evaluation, program environment, and operations; conceptual model guiding the evaluation; sample characteristics and participants' use of benefits and services; New Hope's effects on work and income; effects on material and psychological well-being and time use; effects on family dynamics and child activities; effects on children; and program costs and benefits. Eighty-two tables/figures are included. Appended are the following: local, state, and national donors for the pilot and full programs; comparison of the New Hope Project and Wisconsin Works; data sources; procedures for the teacher survey; comparison of research groups; methodology of the 2-year survey; comparison of income data from different sources; method for estimating earned income credits; child and family study measures in the 2-year study; ethnographic vignettes; barrier indicator index; 35 auxiliary tables; overview of the last year of program implementation; and survey cover letter and questionnaires. The report contains 128 references. (MN)