During the past decade federal aid has transformed education in this country from the elementary to the graduate level through the funds provided for teacher training, educational research and the improvement of textbooks and other instructional materials. Furthermore, the sharply increased federal funds available in 1966 and to become available in 1967 and later years for the purchase of educational materials by schools, colleges, libraries and federally supported social development programs will affect materially the sales and profits of educational book publishers. It is the purpose of this article to consider the probable impact of these federal funds upon such publishers.