The Revenue Sharing Act appropriated $30.2 billion for distribution to State and local governments, including Indian tribes and Alaskan native villages, according to specified formulas for a 5-year period beginning January 1, 1972. Through June 30, 1974, funds were distributed to 230 Indian tribes located in 29 States and to 93 Alaskan native villages. Thirty-five Indian tribes and Alaskan native villages were visited to examine financial and other records and reports, and to discuss revenue sharing activities with local officials to determine how funds were being administered and used. Office of Revenue Sharing and BIA officials were also visited to obtain information on their administration of the program. Although the Act provides that Indian tribes and Alaskan native villages which perform "substantial governmental functions" are eligible to receive revenue sharing, more reasonable and uniform eligibility determinations are required. Funds allocated to tribes and villages at the county level are based on the ratio of tribe or village population to the county area population. Since this method is inequitable, the Congress should change the procedure so that each tribe or village within a State is allocated a portion of revenue sharing funds available for local government allocation on the basis of the ratio of the tribe or village population to the State population. (NQ)