Last year, $2.9 million in grants was awarded to 13 states and counties to study the outcomes of welfare reform by tracking families leaving the TANF program. Two of the grantees were funded for the first year of proposed twoyear projects. Secondyear funding of these two projects is a high priority. In addition, there are important benefits to be gained from providing continuation funding for other selected grants. Such additional funds would be used to examine earnings and employment data over a longer period, to administer surveys to additional cohorts, or to fund additional data linkages or analyses of administrative data. Funding decisions will take into consideration the quality of interim reports, progress to date, and our interest in the proposed follow-up work, providing an incentive for higher quality work among existing grantees.