Higher education in the Czech Republic is going through an important transition, both politically and economically. New methods of financing university operations are necessary during the transition to a market economy as government funds are increasingly being drawn to other areas. Government and academic officials have worked together in the development of the Higher Education Acts of 1990 and 1998, both of which provide more academic freedom and opportunities for higher education institutions to develop programs that will meet their economic needs. Some of the key elements of change and diversification in higher education were: (1) the regionalization of higher education through the tying of regional institutions to some financing from the region's industry and increasing the role of local government support; (2) the creation of bachelor's programs and their expansion of enrollments in which is expected to account for at least 20 percent of the flow of higher education graduates by 2000; and (3) a shift in student financial support from the government to students and families (e.g., tuition fees and private education). Because of similar political and economic structures in all former postcommunist countries, policy makers and educational researchers in transitional countries around the world may find the Czech transition useful in finding alternative methods of financing higher education. (Contains 2 tables.)