The report examines tuition assistance costs being charged to the federal government for family members of employees at educational institutions performing government-funded research. The study involved visits to 5 of the 10 universities receiving the most federal government-funded contracts and grants. The report addresses: (1) comparison of allowability under Office of Management and Budget guidance and Federal Acquisition Regulations; (2) tuition assistance programs as a common practice at many universities; (3) wide variations among tuition assistance programs for dependents and spouses; (4) the federal share of tuition assistance costs; (5) the substantial amounts of research awarded to universities by federal agencies; (6) universities' views on the value of tuition assistance programs; (7) salary ranges of employees receiving tuition assistance; Office of Management and Budget comments; and (8) study scope and methodology. Appendices include agency comments and a list of major contributors to the report. (DB)