With an increasing federal share in the funding of higher education comes motivation and responsibility for monitoring quality and outcomes, raising questions about how federal and state governments should work together. There are good arguments for the federal government to provide states stronger incentives to strengthen and better target their funding and to diminish gaps in educational opportunities across states. But, there are good reasons the federal government should not take primary responsibility for colleges and universities or impose extensive new regulations. This brief suggests strategies for meeting national goals for postsecondary education while preserving and enhancing states’ roles.