This report describes policy and program changes affecting New York's low-income families, issues related to these changes, and ways that city, state, and federal governments might further enhance the well-being of low-income families. Part 1 reviews major new policies enacted by the federal and state governments since the mid-1990s, noting how they have affected low-income families. Part 2 describes changes in New York City's economy and labor market during the period under study. Part 3 describes the New York City Human Resources Administration's approach to implementing major changes in public welfare programs under the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 and the state's Welfare Reform Act, describing programs that have been particularly effective in improving services to low-income families and noting significant improvements in managing such programs. Part 4 describes support mechanisms available to low-income families outside of welfare, such as the Earned Income Tax Credit, Unemployment Insurance, and state-sponsored health insurance. Part 5 highlights issues that New York City must address to improve opportunities for, and raise the living standards of, low-income families. Part 6 examines implications for federal, state, and local policies affecting low-income families. (SM)