In 1981, states, for the first time, were given an option to restructure the AFDC welfare program and require recipients to work in exchange for benefits. States have acted on this opportunity to introduce workfare or work requirements in a climate of polarized discussion and limited information. This paper summarizes the findings available from the pre‐1981 demonstrations on the feasibility, impact, and cost‐effectiveness of this approach. The authors conclude that these early demonstrations and evaluations provide very limited guidance to program administrators. The paper describes briefly a five‐year social experiment currently under way in nine states to address the critical open policy questions through comprehensive process, impact, and benefit‐cost