This paper examines library network activity in the United States and the past, present, and future roles of the federal government in nationwide library networking. The first chapter describes the history and development of library networks and defines terms used in the report. An examination of the current status of networks in the second chapter includes an outline of some of the most critical issues confronted and descriptions of four major information utilities and 21 state or multi-state service centers. Seven federal agencies specifically concerned with library networking are described in the third chapter, with particular attention given to the Library of Congress (LC) and the Office of Libraries and Learning Technologies Federal Library Committee (FLC). The fourth chapter outlines networking issues of specific concern to the federal government, explores interrelationships among the federal agencies involved with library networking, and identifies political and economic trends which affect the agencies. The role and future strategies of the federal agencies in networking are examined in the fifth chapter, which presents six objectives for future federal participation in library networking based on the decentralized development of library networks in response to local and regional service needs, and the historically supportive but non-directive federal role in this process. A 72-item bibliography concludes the report. (ESR)