The cost and impact of institutions of higher education in Texas when implementing and administering federally mandated social regulations were studied. All of the 156 institutions of higher education in Texas were sent questionnaires, and 108 responded. Findings include the following: the total dollar costs for implementing and administering federally mandated social regulations (excluding social security) were projected to exceed $31 million for all higher education institutions in Texas for the 1977-78 academic year. The average dollar cost to public institutions was $175,036, as opposed to an average cost to private institutions of $328,569. These costs averaged 1.28 percent of the total budget. For public institutions, 38 percent of the revenue to cover the added costs of implementing and administering federally mandated social regulations came from the state government; for private institutions, 22 percent of the revenues came from the state government. Increases in tuition have provided nearly 43 percent of the revenues needed to cover the added costs of private institutions. Rehabilitation of the handicapped and work environment types of regulations have the greatest one-time costs of implementation, whereas financial aid to students is the most costly type of regulation to administer on an annual basis. Administrators generally look to the federal government for solutions to the regulatory problems, and for funding to cover the added costs, as well. Recommendations are included. (Author/SW)