On August 22, 1996, President Clinton signed into law major welfare reform legislation - The Personal Responsibility and Economic Opportunity Reconciliation Act of 1996. This legislation could have a significant impact on the state and county governments. Counties, in particular, are concerned that their future costs of assisting indigent persons could increase as a result of restrictions and time limits on state and federal welfare programs. This update examines one of the aspects of the welfare reform legislation that has caused the most immediate concern to California counties-limitations on benefits to immigrants legally residing in the state.