The change in the role and responsibility of the federal government in education and educational research is traced from the creation of the Office of Education (OE) in 1867 to the National Institute of Education (NIE) in 1972. Developments discussed include the task forces of the 1960's and their recommendations, the national program of educational laboratories, regional research and development centers, and various branches of OE and their functions. The conception of NIE is followed through its evolution, objectives, budget, organizational structure, legislative enactment, and first year of operation. NIE activities summarized are (1) the development of new initiatives, including a field-initiated studies program; (2) the development of organizational structures and the hiring of qualified staff; (3) research and exploratory studies, including the continuation of 16 Educational Resources Information Centers (ERIC); and (4) international efforts. (MLF)