This report examines the potential impact of federal welfare legislation, Public Law 104-193, The Personal Responsibility and Work Opportunity Reconciliation Act, on vulnerable families already in or at risk of entering the child welfare/child protection systems. The report includes an overview of the challenges states face; questions for state legislators, policymakers, and advocates to consider in developing and implementing their state welfare strategies; and a detailed analysis of the provisions of the federal law most likely to affect vulnerable children and families. Several areas of possible impact are discussed, including: (1) the loss of income or supports related to Temporary Assistance to Needy Families, resulting in an increase in the number of families unable to provide basic food and shelter for their children and causing neglect and homelessness; (2) increased stress on vulnerable families leading to abuse and other forms of maltreatment; (3) loss of Supplemental Security Income benefits for children with disabilities resulting in inability to maintain children at home; (4) decreased access to crisis intervention services for families in need; (5) new pressures on kinship foster care; (6) increased difficulty in meeting family reunification permanency goals; and (7) new pressure on youth aging out of the foster care system. A framework for analyzing the implications of 15 issues related to the new welfare law for child welfare/child protection systems is presented in a tabular format. (Contains 11 references.) (Author/KB)