In the nearly 5 years since the passage of the Family Support Act, a body of research related to the convergence of welfare reform and adult basic and literacy education has begun to emerge. Much of it deals directly with the experience of providing adult basic and literacy education to Job Opportunities and Basic Skills (JOBS) Program participants. Analysis of employment and training program evaluation research suggests that basic education and literacy services remain an important component of welfare reform, but they need to be fundamentally redesigned. Two studies of participants in Steps to Success, Oregon's largest JOBS program, are more encouraging. One study indicates that participants in the Career and Life Planning (CLP) Track experience positive changes in their concepts of self, skills, and sense of choice and personal control regarding progress toward self-sufficiency. Data from the other study show that clients from the CLP track raised their literacy skills substantially; the gains represented sustained learning gains and appeared to be significantly associated with reductions in future dependence on public assistance. Suggestions for developing effective programs include the following: customizing programs and services for JOBS clients; creating holistic, integrated curricula; developing collaborative relationships with other agencies; and developing more comprehensive participant outcomes. (YLB)