Changing attitudes toward the poor are producing sweeping revisions in public welfare. The homeless population may be particularly affected by stricter guidelines for subsidies and service. This article reports findings from the first 2 years of an ongoing, qualitative, longitudinal study of nine formerly homeless families who received services at a transitional shelter in 1994. The purpose was to explore the extent to which these families were able to maintain self-sufficiency. One year after care, two families were on the verge of homelessness again, and all needed public assistance to meet basic needs. Two years after care, eight families were beginning to attain economic self-sufficiency. Recommendations address programmatic issues, including the need for comprehensive services during the shelter stay and family mentoring during the rehousing process.