The impact of government legislation and court decision on the shape of higher education in the U.S. is examined in this speech. It is noted that recent laws and court decisions concern the admission of students, their eligibility for financial aid, the protection of their rights, and the nature of the programs they enroll in, the hiring and termination of faculty, the conduct of research, and the governance of institutions by administrators and trustees. It is suggested that federal regulations often impede and subvert the educational process by stifling diversity and imposing costly, burdensome, and unnecessary requirements. Suggestions for dealing with these regulations and for preventing too much encroachment are offered. (LBH)