Two problem areas have arisen between the Federal Government and higher education institutions dependent on federal aid. One problem is a growing conflict over regulations, which involves the threat of loss of federal aid to ensure enforcement of federal civil rights goals. The second problem is an economic burden on academic institutions resulting from compliance with the regulations. Three laws that have been sources of controversy in the higher education community are executive order 11246, as amended, Title IX of the Education Amendments of 1972, and Section 504 of the Rehabilitation Act of 1973. The issues that have arisen in connection with equal educational and employment opportunity programs are explored. Problems also arise from requirements of the Social Security Act of 1935, as amended, the Employee Retirement Income Security Act of 1974, and the Age Discrimination in Employment Act of 1967, as amended. These programs impose high expenses on colleges and institutions, and primary teaching and learning missions may be impaired due to lack of funds. Colleges and universities urge that they not be looked on as just one more sector of the nation's economy, since they cannot pass on to students the full cost needed to meet their expenses. Other subjects discussed are: administrative costs and changes resulting from regulatory requirements; the academic community's perception of a heightened adversarial climate on campus; and recommendations to improve the regulatory process so that it better serves the needs of the academic community. (SW)