In the 1986 Amendments to the Higher Education Act of 1965, Congress mandated the specific system of need analysis to be used in determining need for most of the programs authorized in Title IV of the Act. This system will replace the system called Uniform Methodology (UM) for federally supported programs and is expected to be adopted for most state and institutional supportd programs. The implications of the change in governance and specific changes in the methodology are presented. A background and definition of the issue looks at the federal government and postsecondary education and characteristics of California students. A section on history, theory, and operation of need analysis focuses on theory and governance of need analysis, operation of the Uniform Methodology, development of the Congressional Methodology (CM) system, operation of the CM, and implications of the CM system. Governance questions raised by the adoption of the CM focus on criticism of the CM and support for the CM. In discussing critical issues, it is noted that for most financial aid administrators, students, and families, the change from UM to CM will result in confusion. It will require changes in computer systems, forms, and procedures. It is critical that the CM serve as a true need analysis methodology which can be used to determine a student's need for assistance from all sources without regard to availability of funds from any particular source. It should not be reduced to a formula determining eligibility for a particular program. Contains 8 references. (SM)