An evaluation was conducted of the Texas Food Stamp Employment and Training(E&T)/Job Opportunities and Basic Skills Program Conformance Demonstration. The cost analysis determined the impact of the demonstration, the BOND (Better Opportunities for New Directions) program, on costs of administering and providing activity components and support services to participants. It addressed pre/post-demonstration and cross-site E&T program costs for McLennan County (demonstration site) and Smith County (comparison site) as well as annual statewide E&T costs. Findings indicated that BOND required far greater commitments of resources than the pre-demonstration E&T program and the comparison site and influenced spending levels and patterns of the E&T program statewide, particularly child care expenditures. Costs in BOND increased for several reasons: it served more clients who had access to a wider range of activities; clients were generally enrolled for longer periods and required more support services; and BOND provided case management services to all participants. E&T costs were two to three times higher in McLennan than in Smith County. Most of this increase was due to increased child care costs. Although the expanded preemployment and education activities and other services required significantly larger program expenditures than the regular Texas E&T program, they provided the basis for potentially better outcomes through tangible increases in human and social capital. (Appendixes include cost data sources and methodologies and data tables.) (YLB)