To test whether the block grant approach currently under consideration in Congress actually achieves the goal of providing states with the flexibility necessary to effect meaningful policy changes, this Essay contrasts the way two different reform proposals would be treated in the current legal and regulatory environment to the way they would likely fare under the proposed legislation. One proposal used in this analysis is a comprehensive welfare reform program, self-described as progressive, that was developed by a community-based, grass roots coalition in New Jersey. The New Jersey reform proposal aims to improve outcomes for recipients, rather than simply to cut costs. The other proposal is a hypothetical cost-saving program that simpl...