America today is haunted by the paradox of hunger and food insecurity amidst unprecedented prosperity. Despite a record economic expansion, millions of American households struggle to find sufficient resources to feed family members. Focusing on families with children, this report presents current evidence on hunger and food insecurity, identifies problematic aspects of major poverty programs and systemic economic forces increasing inequality, and offers a comprehensive policy framework to address the problem. National studies show remarkably persistent levels of aggregate household food insecurity over the last 4 years despite favorable national economic trends. Approximately 10 percent of all U.S. households and 15 percent of households with children reported food insecurity. Food insecurity varied widely among states, and local studies found hunger rates among various at-risk groups that were 5-10 times the overall national rate. Emergency food providers were facing increased food needs and reported increased numbers of families with children among their clients. For many workers, economic insecurity has been fostered by structural economic changes: long-term earnings stagnation, labor market volatility, and changing employment structure. In addition, welfare reform appears to be having significant negative spillover effects on the Food Stamp Program. Legal immigrant families, even those whose children are citizens, have less "safety net" assistance and are at increased risk of hunger. Recommendations are offered for restructuring and increasing access to the Food Stamp Program and for developing a cohesive national social welfare policy. (Contains 53 references.) (SV)