The authors of this memo to President-elect Barack Obama state that many in Congress are now proposing that the federal government intervene to address a range of problems in education by creating new programs and federal subsidies, including public school infrastructure and construction, funding for runaway college tuition costs, and the costs of early childhood education. Rather than repeating the mistakes of the past, the authors suggest to the President-elect that he can exercise leadership and deliver on his campaign promises by embracing a new approach for federal policy to improve American education. Any new efforts should recognize the limits of federal intervention and empower those who are able to make a difference in children's education, especially parents. Specifically, the authors argue that his Administration should pursue the following actions: (1) Reform federal K-12 education programs to encourage state and local reform and facilitate greater parental choice; (2) End ineffective, wasteful, or duplicative education programs; (3) Protect and expand school choice in Washington, D.C.; (4) Fix ineffective federal early childhood education programs rather than adding new ones; and (5) Call attention to the real engines of reform: the power of parents and successful reform models at the state and local levels. (Contains 1 chart and 20 footnotes.)