This report examines policy issues around subsidy use among parents who leave TANF. It includes data on what parents have to do to keep subsidies as they leave TANF in 11 sites/11 states in 2001, examines existing research on welfare leavers and subsidy patterns, and reviews state policies regarding child care subsidies for welfare leavers for a range of states. It provides an overview of key policy issues and discusses the implications of these findings for efforts to help families move toward self-sufficiency.