This research brief documents higher education's infrastructure needs, examines the effectiveness of existing financing vehicles and methods, and explores new approaches and methods of financing and long-term investment for buildings, equipment, and facilities. Currently, the bulk of capital funding occurs at the state level, and to a lesser extent, at the institutional level, yet this brief calls for a more collaborative funding effort, with the federal government joining this partnership. It is noted that current financing vehicles are inadequate to fund the necessary overhaul of higher education facilities, but that with structural changes such as those suggested in the brief, the federal government could work with states and institutions to enhance the status of higher education facilities. It is suggested that two federal strategies could leverage investments by other sectors: first, a matching grant program could provide funds to help higher education institutions reduce the $60 billion backlog; and second, the federal government could include colleges and universities in two initiatives for financing national infrastructure, a tax-exempt infrastructure bond, and an infrastructure trust fund. Contains a 14-item bibliography. (GLR)