Primary sources, such as public documents and personal statements, as well as periodical accounts and books, form the basis for this historical and analytical study of the National Endowment for the Arts Theatre Program. In the first chapter, the condition of professional theatre during the mid-1960s is discussed. The organization and structure of the theatre program during the first year of its operation are the focus of the second chapter. Representative awards granted by the program from 1968 through 1974 are detailed in chapter three. Chapters four and five are devoted to subjective statements by interest groups and state arts agency representatives, which describe program development and operation. Finally, appendixes include a transcript of the public law which created the National Endowment for the Arts; the theatre program section of the general "Guide to Programs" of the National Education Association; the specific "Theatre Program Guidelines"; an edited interview with Ruth Mayleas, the theatre program director; and a full listing of program grants made through fiscal year 1974. The study concludes that, at present, the National Endowment for the Arts Theatre Program is an extremely important funding agency for American professional theatre. (Author/KS)