Federal involvement in higher education during 1950-1983 is reviewed. Policies and programs that have governed federal support of academic science and higher education are considered, particularly support for basic scientific research. The Soviet's success with Sputnik promoted change from modest funding for defense-related research at selected universities to expanded aid for all fields of research and direct grants to students as well as to researchers and institutions. In the last decade, the initially cooperative and cordial relationship between government and higher education has deteriorated into an adversarial one. It is suggested that with the election of Ronald Reagan as president and the introduction of a new era of conservatism in social policies and the political economy, the relationship has been greatly altered. It is recommended that the relationship between academy and state be reevaluated, and that the universities should assess the costs and benefits of federal support and weigh the risks of losing their autonomy. The government should decide what is in the best interest of the nation. Those responsible for higher education should defend its purposes and the standards necessary to achieve them, even at the risk of dissolving all relationships with the federal government. (Author/SW)