Before meaningful structural changes in the federal role in education can be made, a new style of action must be developed that would include streamlining existing patterns of national intervention so that priority emphasis is unmistakably placed on those functions appropriate to the federal role and supporting and increasing the capacity of state and local government and of citizens in general to make the system more responsive to their needs. The new style of federal leadership might be built around the following activities: initiate a new program of grants to states for improving both state and local capacity for planning and management (including systems of comprehensive planning, accountability, and public participation); initiate efforts to replace most existing categorical programs; increase support for educational research and development by about $30-50 million per year until a level of about $500 million is reached; initiate a federal-state dissemination and technical assistance program patterned after the Agricultural Extension System; provide information and support for citizen organizations to monitor and evaluate state and local programs aided by federal dollars; and stimulate and provide financial support for a nationwide dialogue about the substance and governance of education. (Author/IRT)