A study solicited perceptions of 60 Illinois Education for Employment (EFE) system directors regarding proposed changes in federal funding for vocational education programs; 88 percent responded. Its more specific focus was the changing role of the federal government in vocational education and the proposed federal block grant financing of state-run vocational education programs. A literature review focused on the federal role in funding vocational education programs. Studies addressing federal educational block grants since 1981 were also reviewed. The directors' responses included the following: (1) the federal government should assume a reduced role in the administration of vocational education; (2) state and local administrators were ready to assume the increased responsibility necessitated by a reduced federal role; (3) the federal government should maintain a presence in guiding the vocational education field with respect to new and developing industries; and (4) the federal government should require comprehensive program coordination between students and available jobs. Most directors seemed to appreciate the flexibility and increased responsibility offered by the block grant. Their perception of the ideal role of the federal government appeared to be one of assistance in the development of comprehensive vocational education planning and occupational training in new and developing industries. (Appendixes include a 36-item bibliography, survey instrument, correspondence, and results summary.) (YLB)