This report discusses the impact of child care and welfare reform legislation under consideration by the Senate Republican leadership in the United States 104th Congress, based in part on a national survey of how states are coping, or not coping, with current child care needs and how prepared they are to cope with new demands for child care generated by welfare reform. The report found that combined federal and state investments in child care already fall far short of meeting current needs, and that the need for child care would increase dramatically under the Senate Republican welfare bill. It argues that the bill provides no additional federal funds to help states meet this huge increase in child care costs. In the absence of major changes in the Senate bill, new work requirements would force states to eliminate all child care help for working poor families and leave states facing large budget shortfalls, the report concludes. Seven appendices provide information on child care and work, state spending on child care, waiting lists for child care subsidy programs, states reporting that families whose transitional child care benefits have expired are guaranteed continuing child care assistance, FY 2000 reduction by state in federal child care funding and the number of children who receive federal child care assistance due to H.R. 4, and new child care costs under S.1120. (MDM)