Causes and effects are examined for recent cuts in the budgets of the Office of Education's Fund for the Improvement of Postsecondary Education (FIPSE) and the National Institute of Education (NIE). Through interviews with agency executives the author finds new priority placed on selling themselves and their products to Congress. (JT)

Higher education has made decisions on behalf of government through federal use of the accreditation system, private needs analysis systems, and peer review for allocating program, student aid, and research funds. Noting that these procedures are threatened, the author calls for reform of higher education management to preserve some autonomy. (JT)