This report presents the results of an evaluation of state workfare programs created since 1981, when Congress authorized work program options that let State Aid to Families with Dependent Children (AFDC) agencies experiment with new approaches. The report, divided into seven chapters, focuses on program characteristics, participants, how the programs prepare participants for work, the extent of provision and effectiveness of support services, the programs' results to date, problems with assessing their effectiveness, and implications of the findings for Federal policy. The major finding reported is that the variety of work program options has given states the flexibility to tailor their programs to local need, but that multiple legislative authorizations have resulted in a patchwork of administrative responsibilities and lack of overall program direction. Further, the disparate levels of Federal matching funds across programs limit states' ability to match work program options with participants' needs. Program authorizations could be consolidated and funding levels made consistent across programs without reducing state flexibility. To serve more participants, programs spread their limited funds thinly, but the study found that only a minority of adult AFDC recipients were served in 1985, excluding many with young children or severe barriers to employment. Evaluations of the work programs have shown modest positive effects on the employment and earnings of participants, but wages were often insufficient to boost participants off welfare. Appendices include the study instrument, a breakdown of program characteristics by state, and a description of work program activities. A bibliography and numerous statistical tables are also provided. (KH)