This report examines trends in the incomes of single mothers and their children during a pair of consecutive two-year periods, 1993-95 and 1995-97, considering changes in earnings and changes in safety net programs that provide them with income. Chapter 1, "Introduction," reviews the issue. Chapter 2, "Participation Has Declined Faster than Poverty," examines declines in participation in food stamp and Aid to Families with Dependent Children/Temporary Assistance for Needy Families (AFDC/TANF) programs in recent years. Chapter 3, "How Have Single-Mother Families Fared?" analyzes the income of single-mother families and how it changed over these periods. Chapter 4, "Safety Net Lifts Fewer Children from Poverty," examines recent trends in child poverty, using alternative definitions of poverty. Chapter 5, "Why Are Caseloads Declining?" cites other studies and discusses factors that have caused declines in food stamp, Medicaid, and AFDC/TANF caseloads and whether TANF caseload declines have contributed to participation decline in food stamps and lack of increased enrollment in Medicaid despite expansions in Medicaid eligibility. The disposable income of single-mother families rose broadly and substantially between 1993 and 1995. From 1995 to 1997, reflecting the beginning impact of welfare reform, many single-mother families experienced no net gain in total income, and often experienced a fall in their disposable income. Appendix A presents evidence that including the income of unrelated men who live with single-mother families does not fundamentally affect study results. Appendix B describes the study data and methodology. (Contains seven tables of economic data.) (SM)