Female headed families with dependent children are the poorest in the nation and the major consumers of Federal assistance programs. The findings of a study undertaken to determine the impact of the current Federal strategy toward the poor upon the low income female headed family are described in this document. The report includes: (1) a description of female headed families with children and the nature of their economic needs; (2) a description of the development and structure of those programs which, taken together, constitute the Federal strategy toward the poor family (Aid to Families with Dependent Children, Medicaid, Title XX, Food Stamps, Low Income Public Housing, and others); (3) an analysis of how adequately and equitably these programs serve female headed families and the identification of structural barriers to program effectiveness; (4) the delineation of principles upon which reforms should be based; (5) an analysis of alternative proposals for change with respect to their implications for the female headed families; and (6) recommendations for short term policy action directed to the Secretary of the Department of Health, Education, and Welfare. (Author/AM)