This paper highlights the major federal and state public policy issues that will affect higher education in 2001 and 2002. Its purpose is to provide board members and other higher education officials with brief descriptions of the most important public policy issues. Each issue is defined, with a brief summary and a discussion in greater depth. Information sources are provided for each issue. The issues identified are: (1) tax cuts and the federal budget; (2) effects of the expected economic slowdown; (3) affirmative action and recent court decisions; (4) student aid policies; (5) economic and workforce development; (6) information technology and access to information; (7) teacher training and quality; (8) public perceptions of higher education; (9) standards, accountability, and high-stakes testing; and (10) intercollegiate athletics. (SLD)