Welfare reform legislation in Tennessee provided adult basic education classes for welfare recipients whose literacy skills were below ninth grade. Although more than half of those eligible enrolled in adult basic education, many dropped out. The Completion Bonus, a cash incentive program, was instituted to encourage the completion of education and employment outcomes. This study focused on the role that cash incentives play in encouraging welfare recipients to make progress in adult basic education. Results showed that the incentive increased the number of participants who remained in an adult education program long enough to achieve academic outcomes. (Contains 1 endnote and 3 tables.)