This report looks at the relationship between the federal government and research intensive universities (RIUs), identifies critical trends and issues that are affecting their relationship, and offers principles and recommendations for the future. Following an introduction, the origins and characteristics of the relations between the federal government and RIUs are described with a focus particularly on funding trends since World War II. This is followed by a section presenting aspects and recommendations for four specific issues: (1) the conduct of research; (2) education and development of the talent pool; (3) dissemination and utilization of knowledge; and (4) accountability and administrative burdens. The greater part of this document is made up of two appendixes. Appendix A offers selected data about RIUs, the context in which they operate, and their federally supported research activities. The more extensive Appendix B contains specifics of the relations between 15 federal agencies and RIUs, particularly forms and types of support and funding. The following agencies are included: Agency for International Development; Department of Agriculture; Department of Commerce; Department of Defense; Department of Education; Department of Energy; Department of Housing and Urban Development; Department of the Interior; Department of State; Department of Veterans Affairs; Environmental Protection Agency; National Aeronautics and Space Administration; National Endowment for the Humanities; National Institutes of Health; and National Science Foundation. (JB)