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The Temporary Assistance for Needy Families (TANF) provisions in the fiscal year 2006 federal budget will require most states to substantially increase the number of TANF recipients participating in work-related activities. This paper aims to help state policymakers, program administrators, and others identify approaches to meeting federal participation rates while also improving programs’ ability to help families enter and maintain sustainable employment. It summarizes existing research on how skills and credentials impact labor market success and on effective skills training and postsecondary education strategies. It also examines rates of participation in education and training, and recommends strategies to expand access to these activities within the new TANF policy context.