Until World War II, American universities were widely regarded as good but not great centers of research and learning. This changed completely in the press of wartime, when the federal government pumped billions into military research, anchored by the development of the atomic bomb and radar, and into the education of returning veterans under the GI Bill of 1944. The abandonment of decentralized federal–academic relations marked the single most important development in the history of the modern American university. While it is true that the government had helped to coordinate and fund the university system prior to the war—most notably the country’s network of public land-grant colleges and universities—government involvement after the war became much more hands-on, eventually leading to direct financial support to and legislative interventions on behalf of core institutional activities, not only the public land grants but the nation’s mix of private institutions as well. However, the reliance on public subsidies and legislative and judicial interventions of one kind or another ended up being a double-edged sword: state action made possible the expansion in research and in student access that became the hallmarks of the post-1945 American university; but it also created a rising tide of expectations for continued support that has proven challenging in fiscally stringent times and in the face of ongoing political fights over the government’s proper role in supporting the sector.