Discussing Indian education in public schools, the paper explains that the new Johnson O'Malley (JOM) regulations will be one of the first major tests of the new Bureau of Indian Affairs (BIA) administration's resolve to put the interests of the American Indian people first. The first section presents discussions on: Tuition Payments and JOM; JOM and Public Law 874; Title I and the Indian Education Act. Section 2 covers 2 issues that are the most highly supported and least controversial in the Indian community: treaty rights and Federal trust responsibility, emphasizing who is responsible for federally connected Indians in public schools. The appendices, which comprise the majority of the report, cover: (1) Arizona JOM Program FY 70-71; (2) a discussion paper on JOM in relation to PL 92-318; (3) JOM funding outside of schools; (4) Indian Education Act, 1973-74 School Year, Gallup-McKinley County Public Schools (New Mexico); (5) JOM comparison of state funding; (6) expected distribution of JOM funds; (7) Title IV, Part A -- Education Committees; (8) an overall summary of the Arizona, Utah, and Oregon JOM Programs; (9) proposed JOM regulations; and (10) a brief conclusion signed by various Indian tribes and organizations. (KM)