Despite widely shared aspirations, the vast majority of community college students do not continue their studies at four-year colleges. In November 2013, Jobs for the Future convened higher education leaders and researchers to explore state-level policy strategies for restructuring community college in ways that enhance student progression through Associate’s degree programs and into upper-tier university coursework. Building upon the convening, this policy brief sets out principles for how to approach transfer policy, advocating a three-legged stool approach that balances incentives, cross-institution convenings, and state-level activities and policies. The brief then describes four policy steps to design pathways that streamline entry and encourage progress toward completion of a two-year program of study, while also strengthening transitions to the university level with considerable academic credits toward a Bachelor’s degree.