America needs and expects from higher education quality of result and equality of access. To meet these expectations, a much greater federal investment is essential for present resources cannot keep pace with growth in institutional size and functions, and rising costs. Maintenance of a strong system of higher education is in the national interest and it would be possible for the federal government to meet the proposed level of responsibility without penalizing other priorities. The best forms of federal aid are (1) grants and loans to individual students (2) institutional support to meet increased costs of expanding enrollment and to strengthen areas of particular national concern (3) extension of support for research, construction and special programs. While most of the recommendations made in these areas would result in expansion or augmentation of existing programs, new programs suitable for use in a short-run period are also proposed. These proposals, which envision keeping the share of private supporting funds at their present level of one-half, will cost approximately $10 billion per year by 1976 or about one-seventh of the $70 billion in additional federal revenues prospectively available for that year for new national priorities. Along with the provision of greater equality of opportunity for all able young people, federal support is urgently needed for substantial expansion of medical and health services education. (JS)