During the past decade the Federal Government has significantly retreated from its historical responsibility to maintain the free flow of information that is essential to maintain a healthy democracy. This responsibility includes the collection of basic data on the health of the economy as well as the dissemination of information that assists and propels public debate. The Office of Management and Budget (OMB), which has wide-ranging authority over Federal information activities, is the agency primarily responsible for discouraging the flow of public information. It has failed in its mandate to improve Federal information resources management (Circular A-130), deferring to private sector businesses instead of helping agencies to plan for the new electronic information age. Two areas in which OMB has exercised control over Federal information activities are paperwork reduction and information resources management, and management of Federal information dissemination through reductions in printing of government publications and the privatization of government information dissemination. The consequences of these cutbacks in information activities have been magnified by the current revolution in information technology. Efforts should be made to: (1) articulate a national information policy; (2) reform legislative direction and oversight; (3) reduce centralized political control of Federal agency information activities; and (4) strengthen the capabilities of Federal agencies to control their information activities. Congress and the President must work together to redirect Federal information policies and practices if the free flow of public information is to be ensured. (SD)