As a first step toward the development of social indicator reports on the role of the federal government in elementary and secondary education, this paper reviews the history of that role and summarizes the literature that discusses controversies and related issues. The discussion focuses on two issue areas: (1) the responsiveness of federal educational expenditures to the needs of children and schools, and (2) the level of federal influence in elementary and secondary education. The paper presents two conceptual frameworks that identify factors directly or indirectly affecting federal expenditures and federal influences. The paper suggests that these factors, whether or not subject to policy manipulation, should be taken into account in the preparation of social indicator reports. The paper also presents a briefly annotated bibliography of 45 relevant references. (PGD)