This statement by the American Council on Education reviews the educational achievements of the past decade and explores ways by which existing and future federal programs can promote greater financial stability in a critical national endeavor. Major goals of the present systems of federal support for higher education include greater educational opportunities for increasing numbers of students and the output of more highly trained manpower at graduate and professional levels. It supports high quality in education, basic research, both in its own right and in the hope that applications of new knowledge may help to solve some of the country's problems, and the mobilization and use of institutions' intellectual resources in a host of service functions. Yet the fiscal problems faced by colleges and universities in 1968 were graver than they were in 1958. The Council suggests the elimination of cost-sharing and matching requirements in future government-university relationships, and points out the need for long-range planning, careful budgeting and sustained federal commitment for university programs that are federally supported. The Council also recommends adequate federal funding of existing programs, expansion of student aid and facilities construction programs, and provision of support for general institutional purposes. Copies of the pamphlet are available without charge from the Publications Division, American Council on Education, 1785 Massachusetts Avenue, N.W., D.C. 20036. (WM)