Summary: The states have been delayed in implementing steps under the Workforce Investment Act related to establishing formal agreements between partners at one-stop centers. To support the one-stop system the act requires, the states used multiple federal funding streams to report during fiscal year 2000, with the top funding sources most often coming from the Department of Labor's programs, such as the act, the Employment Service, and Unemployment Insurance. Although the Temporary Assistance for Needy Families (TANF) block grant is an optional partner, links between it and the act are being forged in most states. As the states and localities have attempted to integrate their services, they report having confronted several challenges: (1) building partnerships with other agencies, as required under the act; (2) developing the infrastructure to support an integrated program, including the physical facilities and the computer systems; and (3) developing an integrated approach and responding at the same time to the requirements of individual federal programs. Despite these challenges, the states are developing integrated service delivery approaches that show promise, often focusing their efforts on resolving the issues that had been found in the fragmented employment training system.