This publication on family policy reviews federal and state policies and offers recommendations for state action. Initial discussion covers changes in the American family, demographics, and the economy. Issues of family maintenance considered include: family welfare policy and welfare reform; child abuse and neglect; alternatives to out-of-home placement; custody and visitation; child support enforcement; and homelessness and families. Issues of families and the workplace concern: pay equity; child care; family leave; job training and retraining; and youth employment and service. Issues of family support and development through the family life cycle concern: parent education for parents of children from birth to 3 years of age; early childhood education; families and the school system; drop-out prevention; adolescent pregnancy; and informal family caregiving for adult family members. Issues of family health policy concern prevention of low birthweight; the fight against substance abuse and its effects on families; youth suicide; responses to mental health problems; human immunodeficiency virus infection and disease; access to family health care by the medically indigent; and home care for disabled children provided by supporting families. State innovations in coordinating and financing family services are outlined. (RH)