This document consists of two issue briefs that provide information on the new federal welfare program, Temporary Assistance to Needy Families. Part I looks at these requirements of the new law: development of a state plan that describes how the state will ensure that welfare recipients are working within 2 years; determination of what activities will count as work; and enrollment of a rising percentage of families in work or work activities for at least 20 hours per week or loss of a part of their block grant. It describes their potential impact on the adult education and literacy field and suggests actions that can be taken now to prepare effectively for the changes and minimize potential problems. Two fact sheets on welfare reform and education and employment and income of welfare recipients are attached. Part II focuses on an increased demand for adult basic education (ABE) and literacy that could result from the welfare reform law. Section 1 provides an overview of four developments that have opened the door for expanded access to ABE and literacy programs for welfare recipients: governors support more flexibility for education; vocational education training questions are answered favorably; declining caseloads give states unexpected funding "surplus"; and a national survey finds renewed interest in education. Section 2 reviews the basic structure of the law and discusses its likely impact on the literacy field over the next 5 years, especially increased adult education enrollments. (YLB)