A proposal up for consideration before the United States Senate is discussed. The program suggested is a redesign of the Department of Health, Education, and Welfare in keeping with the principles of the New Federalism. The proposal touches every major area of HEW policy: it simplifies the Department's program structure; it narrows and focuses the Federal role; and it decentralizes decision-making power to individuals, States, and local governments. New initiatives are proposed in: health insurance, student aid, welfare reform, special revenue sharing, and consolidated programs of capacity-building to aid State, local and voluntary service suppliers. (Author/CK)