This paper, which focuses on welfare reform's impact on community colleges, is part of a series published by the Center for Community College Policy, designed to support state and local policymakers, as well as educational leaders who are interested in policy issues related to the two-year postsecondary sector. Education has always been a critical tool for helping those in poverty to move into jobs that offer enough compensation to free them from dependence on public assistance. Traditionally, community colleges have educated students at the lowest ends of the income scale. Forty-eight percent of students from families at the bottom fourth in income have chosen public two-year college as entry to higher education as opposed to 27% who selected four-year institutions. This article focuses on state policy options and collaborative enterprises designed to help welfare recipients become financially independent by way of education. Lengthy courses of study are not appropriate for students in extreme financial situations, therefore community colleges have developed more streamlined General Education Degree programs, basic job-readiness courses, and short-term vocational training. Policymakers need to allocate resources up front to provide for childcare, transportation, and other supports that will enable poor working parents access to education. (AF)