The passage of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 means that, for the first time, the federal government has shifted substantial responsibility for maintaining a social safety net for the most vulnerable populations to the state governments. This guide summarizes the contents of the new law, identifies existing policies that must be changed, and points out some positive options available to states. One major purpose of the Act is to assist families to enter into and retain employment, but it seems that many people will be adversely affected by changes in the food stamp and Supplemental Security Income programs. Of all the current recipients of benefits, immigrants will be the most negatively affected. Those who enter the country will not be eligible for the 5 years following their arrival, and those who have legally entered in the past may lose benefits as of January 1, 1997. Although clear evidence is sparse, many people fear that the work requirements will have very negative effects on children. Adequate child care is a necessary, but costly, accompaniment to initiatives that aim to move families from welfare to work. The overview contains a discussion of critical issues in the new legislation, and a checklist of the major actions required. Detailed program descriptions are given for the way the Act affects welfare recipients in the following areas: (1) Temporary Assistance to Needy Families; (2) Supplemental Security Income; (3) child support; (4) welfare and public benefits for aliens; (5) child protection; (6) child care; (7) child nutrition programs; (8) food stamps and commodity distribution; (9) Medicaid; and (10) Social Services Block Grant provisions. A list of 11 states within waivers is also included. (SLD)