Issues concerning federal assistance to public black colleges and universities are addressed. Attention is directed to the question of whether federal subsidies, given the role of state controlling agencies, automatically benefit black colleges in a meaningful, lasting manner. A second question is whether federal aid to black institutions, in its historical form, is another means of controlling public black colleges and perpetuating their so-called second class status. The relationship between public black colleges and the federal assistance since 1965 is discussed, and examples of state influence and its subsequent negative impact on black higher education are cited. The position is taken that the federal government cooperates with the states to control black higher education by imposing conditions on financial assistance that favor state interests and state management. It is argued that federal assistance regulates and controls public black institutions. Implications of current practices for public black colleges in the 1980s are discussed, and 10 demands that should be enacted to end federal and state collusion are identified, including: the states' role in the distribution of federal funds to black institutions should be eliminated; and all proposals should be considered on merit. (SW)