This article explores the implications of recent welfare-related policy change for the well-being of children in low-income families, and for research investigating child development processes and outcomes. It provides an overview of current welfare-related policies and explores the implications for developmental researchers. The article also synthesizes early findings from research, highlighting both overall impacts and the more nuanced evidence that while families are transitioning off welfare, only a small number are transitioning out of poverty, and a subgroup of families at risk are not faring well. It then examines, from a theoretical and methodological framework, what developmental psychopathology might bring to the study of welfare-related impacts on children in the context of this complex and changing policy landscape, and what welfare researchers might bring to the field of developmental psychopathology. The article concludes with broad recommendations for both research and policy.

When people think of the origins of American social policy, they usually think of the 1935 Social Security Act, part of Franklin D. Roosevelt's second New Deal. That legislation created both old-age insurance, now commonly known as social security, and Aid to Dependent Children (ADC), recently known as welfare. Though central to today's social policy, these programs were somewhat marginal to New Deal social policy because they dealt with special categories of “unemployable” citizens. The key concern of New Deal social policymakers was instead with those deemed “employable,” and their problems were addressed mainly by another and much less studied program from the second New Deal: the “Works Program” operated mainly by the Works Progress Administration (WPA). The lack of attention to the WPA has had important consequences for understandings of American social policy.