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This paper reviews the current structure of the programs authorized by title III of the Higher Education Act and the structural changes proposed for this title in the FY 1986 budget. Title III programs currently provide funds to institutions of higher education for development projects designed to improve academic and financial management capabilities. The Administration proposes in its FY 1986 budget to eliminate two of the current programs and focus funding on endowment building. The proposed FY 1986 appropriation level of $141,208,000 is the same as the FY 1985 appropriation level.