This report summarizes a hearing held on the current state of research facilities at United States universities. The hearing also focused on what role the federal government, universities, and business can play in restoring the university research infrastructure. Part I of the report analyzes the hearing according to the various issues that were raised by witnesses. These issues are: (1) research facilities; (2) research equipment needs; (3) recruitment of young faculty; (4) graduate students; and (5) university-industry relationships. Recommendations that both federal and state governments could employ to address problems related to these issues are also summarized. They include: greater university, government, and private cooperation; establishing new federal and state funding mechanisms; and reviving past programs, such as the National Science Foundation's Graduate Science Facilities Program. Part II provides a summary of the verbal and/or written testimony presented by George A. Keyworth, Charles E. Young, Frank H. T. Rhodes, John D. Silber, and Charles Hess. (JN)