The history of the federal role in education and the nature of the federal role required today and under the "New Federalism" are examined in this publication. The intent of the 25-page discussion paper is to encourage education policy makers to engage in a dialogue that will result in educational decisions that promote the economic and cultural well-being of the country. The paper outlines three points for discussion: the federal role beginning with the Vocational Education Act of 1917; the contemporary need for federal involvement in education to support defense, economic, social, and environmental needs; and whether the New Federalism concept may be an effective process to fulfill governmental education responsibilities. The paper concludes that two themes bind together the direction of federal education policy: the role of education in achieveing national goals, such as defense, civil rights, and eradication of poverty, and the maintenance of quality education and a well-educated citizenry as national objectives in themselves. The paper highlights the significance of these two themes as a basis for charting the course of future education policy. (Author/JM)