With the 2006 mid-term elections over, higher education will be an important topic in public policy discussions at the federal and state levels. State colleges and universities will need to stay informed and be prepared to take action as discussions about access, affordability, and accountability play out in the coming year. This issue of "Policy Matters" observes that: (1) By winning control of both the U.S. House of Representatives and the U.S. Senate, Democrats will set priorities and determine the agenda in Congress--They will lead the reauthorization debates related to the Higher Education Act and No Child Left Behind, as well as other issues related to academe; (2) Democrats made big gains in governor's mansions and statehouses--The new Speaker of the House should expect a heightened level of activism from the governors; (3) This was a busy year for state ballot measures, with good and bad news for higher education; and (4) Higher education affordability, access, and accountability promise to be major issues in 2007 state legislative sessions. A list of resources is included.