This guide provides the information family literacy programs, practitioners, and friends need to understand the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA) and its ramifications. It also addresses how to advocate on behalf of family literacy and to adapt programs to meet welfare reform requirements, while providing comprehensive family literacy services. Part I is an introduction. Part II discusses the features of the national welfare reform law that have the most immediate impact on family literacy, lists suggestions to help family literacy programs be successful in the welfare-to-work environment in four main categories (instructional content, program design, partnerships, and advocacy), and lists steps a family literacy program can take to respond to welfare reform. Part III contains highlights of some experimental designs of programs and initiatives, including the following: South Carolina Head Start Family "Independence" Literacy Collaboration Project; National Center for Family Literacy (NCFL) Family Independence Initiative; Literacy Volunteers of America--Chippewa Valley, Eau Claire, Wisconsin; Jefferson County Public Schools, Louisville, Kentucky; Canton City Schools Even Start, Canton, Ohio; Rochester City School District, Rochester, New York; and Atlanta Family Learning Program, Atlanta, Georgia. Part IV provides a summary of the provisions of the welfare reform act and a summary of tribal provisions. Part V contains descriptions of 12 welfare reform resource organizations. (YLB)