This memorandum is directed to the question of the appropriate Federal and Office of Education roles in early childhood education, specifically, what programs or approaches will meet the objectives and diverse needs of the proponents for preschool programs. In particular: (1) is there a need for some form of federally funded early childhood programs; and (2) if so, should they be "educational" in the traditional sense of the term? The issues are discussed under the following general topics: (1) Relevant Societal Conditions; (2) The Constituency; (3) The Issues; (4) The Need and Costs of Day Care; (5) The Federal Effort; (6) The Research Evidence; and (7) Recommendations and Conclusions. Statistical data are presented in tables and illustrations, and 129 references to related documents are included. (LS)