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This paper examines the rationale for federal involvement in occupational education. It is presented in three sections. The first section briefly outlines the historical role of federal government in occupational preparation and extracts from this history some ongoing arguments and presents in greater detail two important changes: the Education Consensus and the Institutional Transformation. The second section outlines why certain changes implied by the Education Consensus are unlikely to be undertaken by states and why a justification for a federal role in implementing this Consensus remains. The final section explains what federal policy might do in the realm of occupational education.