This report summarizes an analysis of New Hope, a demonstration program designed to improve the lives of low-income people willing to work full time by providing several benefits (an earnings supplement to raise their income above poverty, subsidized health insurance, and subsidized child care) and offering help obtaining jobs. New Hope was implemented in inner city Milwaukee, Wisconsin. Half of the 1,300 adults in the sample were assigned to a group that was eligible to receive New Hope's benefits, and half were assigned to a control group that did not receive benefits. This evaluation examined the families and children of 745 sample members. Evaluation data came from state administrative records, New Hope program data, surveys of parents and children at 2 and 5 years after randomization, and surveys of teachers. A subgroup of families was followed ethnographically from the third through fifth year. Results indicated that New Hope increased work and income. Intervention families had more stable employment, lower poverty rates, and higher wages at 5 years than control families. They also had increased instrumental and coping skills and were more aware of community resources. Intervention children had more time in center-based child care and other structured activities. New Hope improved children's positive social behavior and performance in school. Includes 8 tables/figures. (SM)