Analyzing the Indian Education Act of 1972, this report presents both historical background and future projections relative to the Act. The history of the Act is presented in terms of discussion on: (1) Legislative Preparation; (2) Hearings; (3) Drafting and Passing the Bill; (4) Appropriating Funds; (5) Rescinded Funds; and (6) Funding for 1973. Analysis of the Act is presented as follows: (1) Discussion of Parts A-E; (2) Purpose and Policy of the Advisory Council (Forming the Office of Indian Education and Funding Initial Grants); (3) The Long-Run Promise of the Act (Entitlement); and (4) The Outlook for Fiscal 1974 (Funding, Program Direction and Priorities, and Issues to be Resolved). Presentation of future projections relative to the Act include sections on the following: (1) Characteristics of the Native American Population (Languages, Participation in the Economy, Health and Longevity, Birth Rate, Infant Mortality, Adult Causes of Death, Communicable Diseases, Age Composition and Life Expectancy); (2) Historical Background of Indian Education; (3) Indian Participation in the Educational System (Retention and Dropout Rates, The Quality of Education, Achievement Measures, Special Problems, and Ability vs Achievement); (4) Planning Priorities (A Planning Point Checklist); and (5) Role of the Indian Community (United Action). (JC)