The authors show here that contrary to popular rhetoric, at an early stage the American federal government demonstrated remarkable influence over national education policy. This occurred in spite of the fact that the political institutions of the national government were fragmented and poorly organized to accomplish such goals. In this light, the authors' focus is on how late-19th-century developments set the tone and impediments for meaningful educational reform that carry over through today. The historical development of American education detailed here traces the roots of the ongoing policy tug-of-war between localism and national progressive goals that characterize contemporary reform efforts. Ironically, it is its early roots as the premier educational resource provider that has ultimately contributed to the greatly diminished role of the U.S. federal government in education today. This is a legacy that policy makers, parents, and educators are wise to understand but often neglect as they craft reform.