This special report reviews key aspects of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 and its implications for Illinois. The report describes the major stipulations in the federal welfare bill and summarizes the impact on Aid to Families with Dependent Children (AFDC); food stamp, child care, Medicaid, and Supplementary Security Income programs; child support enforcement; and immigrants. The following findings emerge from this policy analysis. Illinois is likely to lack funds to support AFDC because of the work participation and other requirements. Low income families will suffer from cuts to food stamps, and child care providers will have additional burdens of verifying income and citizenship status of recipients. The change in disability assessment will be problematic for children with combined disorders and behavioral problems. The child support provision enables Illinois to use new tools to improve the enforcement of child support payment. Eliminating benefits for legal immigrants will seriously jeopardize thousands of Illinois families. This report challenges policymakers and citizens to consider several issues, including how to provide adequate temporary income support, job availability, and the abilities of local governments to provide services. The report also provides a list of additional sources of information on the welfare bill. (Author/KDFB)