This report describes how 18 states and 26 counties within those states responded to the family policy provisions of the 1996 welfare law. The report also offers explanations for why state and local efforts to move clients from welfare to work were greater than efforts to promote marriage and prevent nonmarital births; why abstinence-based efforts to achieve lower rates of teen pregnancy overshadowed state and local efforts to achieve the other family policy goals of PRWORA; and why states and localities responded in limited and diverse ways to the family formation goals of the1996 welfare reform law. (Author abstract modified)