Federal governmental impact on the University of Iowa has four forms. The first and most significant is through expenditures on education, student aid, research, health service, and similar efforts. Dramatic variations in the level or kind of expenditures in these areas have far greater effects on higher education programs than do regulations. The second form of influence is through federal laws, regulations, and administrative practices that require colleges and universities to assume a financial burden. A third and potentially more serious impact comes in the form of constraints (for example, on genetic research). The University of Iowa has experienced relatively little of this kind of control. The fourth form of federal influence is the burden imposed by reporting responsibilities; federally mandated paperwork is also a symptom of the other three forms of influence. At the bottom of the current furor over federal influence is a breakdown in confidence between higher education and the government. Restoration of the once-flourishing partnership by resolution of the many separate issues will be an important task for the near future. Appended to the report are documents about the university of Iowa: a publication describing graduate education; the results of a campus survey on the impact of federal regulation; a reprint of an article on the impact of regulation; a summary of federal funds for student aid; and a 1977 annual report on research and related documents. (MSE)