The New Chance national demonstration project is designed to help disadvantaged 17- to 21-year-old mothers and their children achieve economic self-sufficiency and optimal physical and psychological development and thereby to curtail the perpetuation of intergenerational poverty. The New Chance model provides a variety of services to meet the program's multiple objectives. The model will be implemented in 10 states at 16 selected sites that will serve as models for other states and organizations interested in developing similar programs. At least 100 young mothers will participate at each site. Funding will be provided through a consortium of federal, state, and local government agencies, private corporations, and foundations that are committed to increasing knowledge about programs that can inform social policy. The model was piloted in six sites for a year. The pilot sites were successful in attracting the highly disadvantaged population for whom the model was developed, and the sites were able to mount and integrate the comprehensive services that comprise New Chance. Short-term data on the performance of the pilot programs and the achievements of participants suggested that the model has sufficient strength and promise to make the yearlong, 16-site test. (Project funders and names and addresses of demonstration sites are listed.) (KC)