The purpose of this paper, one of three related documents, is to describe the events leading to the creation and organization of the Fund for the Improvement of Postsecondary Education, which was authorized by Congress in 1972 through the Educational Amendments Act. The legislative mandate for the fund was to improve postsecondary educational opportunities with an initial appropriation of $10 milllon. The first section of the paper describes the expansion of Federal involvement in higher education that eventually led to the fund. The second section describes the internal planning that took place in preparation for the agency's establishment. (Author/LD)