In an attempt to spotlight issues of federal aid to education (including quantities, destinations, delivery mechanisms, and rationale), and their probable effects, the Institute for Educational Leadership assembled a five-person bipartisan group of policy observers for two spontaneous discussions. This edited transcript of those sessions covers the following topics: the federal role; the state role; regulating the regulators; getting facts to policymakers; organizing the federal effort; creating new forms; policy implications of a separate Department of Education; pressures and expectations; the new department as a fresh start; and the role of the White House. Participants included Robert Andringa, Chester Finn, Michael Timpane, Thomas Wolanin, and Samuel Halperin. (LBH)