Recent resistance to government spending and federal interference has reduced the federal role in education to less than the minimum appropriate level. Opportunities to change this situation presently exist, but will disappear with time. Trends in economics, technology, demographics, the philosophy of government, and changing cultural values and beliefs indicate that the 1980s will be a period of substantial uncertainty in America, necessitating social flexibility and high productivity. Changes in education are vital to encourage this productivity and flexibility. A revision of current federal educational goals is necessary, but will be insufficient without the creation of a new role for the federal government in education. Defining this new role as the coordination of the production and distribution of knowledge will provide the necessary overarching scope to federal efforts. These efforts can then be readily coordinated through a central agency such as the new Department of Education. (Author/PGD)