Studies have shown an inextricable link between under-education and chronic, intergenerational welfare dependency. With welfare reform focusing on moving individuals into the workforce more quickly, state welfare reform efforts to assist low-income parents and their children are needed. Incorporating family literacy instruction into welfare-to-work programs is one of the strategies that states can use. Family literacy facilitates the transition from welfare to work, raises rates of adult employment and child school readiness, improves children's learning, and can help welfare recipients get and keep jobs. States can implement the following activities that tie family literacy to welfare-to-work programs: (1) define family literacy as an allowable activity under the state's work requirements; (2) have family literacy instructors serve as case mangers; (3) add family literacy programs to the post-employment support system; (5) use existing resources to support family literacy programs; (6) use block grant funds to encourage the provision of multiple services to serve the family unit; (7) designate family literacy programs as allowable sites for child care funds; (8) use Department of Labor Welfare-to-Work formula grants to serve families in family literacy programs; (9) use federal funds to strengthen the father figure's role in the family; and (10) create family literacy programs targeted to teen parents. An appendix provides information on the National Center for Family Literacy Funds Family Independence Initiative Demonstration Projects. (Contains 12 endnotes.) (KC)