This report discusses several kinds of Federal aid to education and decides that a Federal foundation program is the best type. Arguments in favor of such a program are that (1) contemporary societal problems require a national policy (including a federally financed education program), (2) equity of financial responsibility for the educational system among individuals is best assured through a Federal program supported by a Federal tax system, (3) inequities among States in financial ability and effort can best be removed by such a program, (4) the economic well-being of the nation depends on the scope and quality of education afforded by a foundation program, and (5) a more responsive educational financing system will develop as a result. (JF)