This paper examines social welfare policy and its impacts on Appalachian children. The discussion is based on a notion that a just society meets basic needs of all its members. Current social policy: (1) does not include a comprehensive family policy; (2) depends on state and local contributions which are limited in rural Appalachia; (3) has become more conservative; (4) has suffered from a stressed national economy; and (5) is geared toward urban areas, and does not consider Appalachian values. Income support programs include Social Security, Aid to Families with Dependent Children; Food Stamps; the Women Infants and Children supplemental food program; and the Federal School Lunch Program. Medicaid is the principal program for health care, while Community Mental Health Centers are the primary avenue for mental health needs. Child Welfare services include Child Protective Services, Foster Care, Adoption Services, Day Care, Homemaker Services and Group Care. Public housing and housing subsidies attempt to provide adequate housing for the poor. Although new national policies could further the cause of social justice, the federal deficit, budget cuts, and other problems make it unlikely that funds will be available to implement the necessary policies. Therefore, rural communities should develop community-based programs to support children and families. By encouraging small-scale economic development, communities can use the informal economy to support families. In addition, voluntary associations could address mental health needs and serve as advocates for children and families. This paper contains 50 references. (KS)