Literature concerning the relationship between higher education and politics is reviewed. Attention is directed to federal, state, and local levels of government and to institutional politics. Federal involvement in higher education, governmental regulation, higher education lobbying, and the emergence of the new Department of Education are addressed, along with statewide coordination, accountability and autonomy, budgeting, interinstitutional relationships, and institutional politics and the community college. Although the review encompasses essentially the decade of the 1970s, it extends to several earlier and significant efforts. The politics of higher education as a field of inquiry is also considered by highlighting theoretical and empirical works that are part of the literature; by identifying concepts and theories from political science and public administration, other social sciences, and the general politics of education literature; and by suggesting future avenues for conceptual development as well as needed research. It is suggested that the involvement of the federal government in higher education has been indirect, occurring primarily through fiscal support to students, specific programs, and academic research. The federal interest in higher education is both fiscal and regulatory. In contrast, the state governments have a direct, multifaceted relationship with colleges and universities. Coordinating agencies, which conduct statewide planning, occupy a critical position in the relationship between government and higher education. The literature reflects increased recognition of academic institutions as political organizations. A bibliography is included. (SW)