Since passage of the Balanced Budget Act of 1997, most States have retargeted services in the Food Stamp Employment and Training (E&T) Program to able-bodied adults without dependents (ABAWDs). The Balanced Budget Act more than doubled funding to States for USDA's Food Stamp E&T Program. The law requires States to send at least 80 percent of the funding on services that can fulfill the work requirement imposed by welfare reform legislation in 1996 on ABAWDs. ABAWDs must either work at least 20 hours per week or participate in a qualifying employment and trainig activity. This report fulfills the Act's mandate to USDA to examine and report on how States use the new funds to create work opportunities for ABAWDs and if this is done in an efficient and effective manner. The results show that total E&T program spending increased, though States used less of their Federal grant allocations and more of State matching funds. Nationwide participation in the E&T program dropped sharply after the Balanced Budget Act, with variations among States and among E&T component types. States have specific recommendations for improving the program. This publication provides the findings of the study. For more information on the survey instruments used for the study, see State Use of Funds To Increase Work Slots for Food Stamp Recipients: State Data Collection Instruments at htt://www.ers.usda.gov/publications/efan01007.