In an effort to reduce the incidence of out-of-wedlock pregnancies among welfare recipients, some states have imposed family caps on welfare benefits. One factor that determines the amount of cash benefits a family receives is the family’s size-larger families receive more benefits. In states with a family cap policy, however, no additional cash benefits are provided when the birth of a child increases the size of the family. To provide you with information on family cap policies and their effects, you requested that we (1) identify the states that have family caps as a part of their TANF programs and describe how the caps are implemented; (2)determine the number of families whose benefits have been affected by the family cap and estimate the amount by which the family cap has altered a family’s cash benefits; and (3) using existing studies, determine what is known about the effect of the family cap on out-of-wedlock births, abortions, and poverty. In conducting this work, we also reviewed HHS’ research agenda to assess whether it supported the TANF goal of preventing and reducing out-of-wedlock pregnancies.