The federal government is approaching a new round of consideration of administrative reorganization, including the areas of education and of support for scholarly endeavors. The concern of the Carnegie Council is that the government, in view of its recent experience with rapid program expansion and of the vast problems ahead in health care and income maintenance fields, might well improve its organizational structure, with benefit to public service. Possible changes are: (1) the development of a Department of Health, Education, and Science (DHES) organized around the theme of growth; (2) development of a Department of Labor and Human Resources, absorbing the welfare responsibilities of the present Department of Health, Education, and Welfare, and organized around the theme of work; (3) establishment of the office of Under-Secretary of Education, Research, and Advanced Studies within the DHES, while elevating the status and redefining the functional responsibilities of the bureau chiefs within the present Office of Education; and (4) assignment to this Under-Secretary, among other duties, of coordinating responsibilities throughout federal agencies for educational programs, basic research and scholarship, and student financial aid. (MSE)