The immediate and future needs for federal action in the area of higher education are outlined, specific proposals are made, and the positive and negative aspects of various prospective legislative programs are delineated. Among the recommendations are: the ability of institutions to provide quality educational programs at all levels for students having a wide range of backgrounds and interests should be strengthened. Education should be provided at a cost most students can afford. Basic research should be expanded and its results used in solving human problems through applied research. Through programs such as the Education Professions Development Act and others, the vocational and professional competence of individuals should be improved. University resources should be made available beyond the campus. The federal government should give greater support to the arts and humanities, help provide genuine access to educational opportunity, and help strengthen the capacity of all educational institutions to assist developing countries and to understand the role and responsibilities of the US in the world. The 2 Associations are strongly opposed to proposals, such as tax credits and required fees, that would throw more of the cost of higher education to the student rather than to society--the main beneficiary. They also oppose proposed programs that would increase discrimination against low-income students, or programs that would reduce the accountability of those receiving public funds for their use. Broad federal support on an institutional basis is urged. (JS)