as to more adequately meet the needs of American Indian students who seek post-secondary assistance. Such post-secondary assistance stems from resources available under the National Direct Student Loan, College Work-Study, SEOG, and Basic Educational Grant program activities administered by the U.S. Office of Education and scholarship funds appropriated and allocated to the Bureau of Indian Affairs as aid to Indian students. Underlying this coordination is the understanding that American Indian students have a right to both U.S. Office of Education and Bureau of Indian Affairs available student financial aid commensurate with Office of Education program statutory and regulatory requirements and commensurate with Bureau of Indian Affairs eligibility criteria concerning Indian blood quantum and need. In order to achieve such coordination and respond to this right, the U.S. Office of Education and the Bureau of Indian Affairs will further develop staff responsiveness and services in the delivery of financial aid information and assistance to American Indian students and financial aid officers.

The Bureau of Indian Affairs and the U.S. Office of Education have become increasingly concerned that Indian students are experiencing unnecessary hardships which result from inadequate coordination of student financial aid resources whose conjuncture is designed to assist them. While coordination between the U.S. Office of Education and the Bureau of Indian Affairs is necessarily a demanding and sometimes imperfect process, it is hereby reaffirmed that among all the parties who may suffer inconvenience from this imperfection, the Indian student shall bear the least possible burden.

Management and program staff of both the U.S. Office of Education and the Bureau of Indian Affairs will implement this memorandum of understanding to its fullest extent so as to maximize the right of American Indian students to financial aid.

1. Inherent in this understanding is the concept of an ongoing dialogue to provide, and improve as necessary, the American Indian students and financial aid officers who serve them with clear cut knowledge of the availability of student financial assistance. This dialogue will address:

(a) Referral of Indian students back and forth between Bureau of Indian Affairs scholarship officers and post-secondary financial aid officers due to reluctance or inability of the respective officers to make initial commitment of agency resources;

(b) Acknowledgment of the extreme poverty level of some American Indian students, recognizing the basic and special needs of Indian students; and

(c) The role of Bureau of Indian Affairs scholarship officers and postsecondary financial aid officers.

2. Furthermore, it is understood procedurally that the central office of the Bureau of Indian Affairs is responsible for making a tentative allocation of scholarship levels before the opening of most post-secondary institutions in September and for issuing guidelines which assure coordination of effort.

3. The U.S. Office of Education will prepare guidance materials (that is, “dear colleague" letters) concerning Office of Education administered programs by mid-September of each school year.

(a) Such materials will include information concerning methods for the construction of financial aid packages which take into account the policies and procedures of the Bureau of Indian Affairs.

(b) Such materials will be circulated to student financial aid officers, appropriate Bureau of Indian Affairs scholarship officers, and U.S. Office of Education Regional Offices in order to insure dissemination of current U.S. Office of Education administrative direction and assistance.

4. Construction methods of such financial aid packages will stress the use of all available U.S. Office of Education financial aid resources in conjunction with the consideration of Bureau of Indian Affairs resources.

Furthermore, it is understood that key regional higher education representatives from both agencies will be available to meet on a regular basis to resolve policy issues and effectuate procedural activities so as to maximize the delivery of financial aid information and assistance to American Indian students and financial aid officers.

U.S. Commissioner of Education.

Commissioner of Indian Affairs.

62-746-76- 2

STATEMENT OF MORRIS THOMPSON, COMMISSIONER, BUREAU OF INDIAN AFFAIRS, U.S. DEPARTMENT OF THE INTERIOR

Mr. THOMPSON. Mr. Chairman, we have a rather lengthy statement, and in an effort to save some time, I will endeavor to highlight my

statement.

Chairman PERKINS. Without objection, your statement will be inserted in the record.

Mr. THOMPSON. Mr. Chairman, we congratulate the committee for holding these oversight hearings on Indian education. both from the Bureau of Indian Affairs' point of view, and that of USOE. I know of no more important program in the field of U.S.-Indian relations than that of education.

The Bureau of Indian Affairs provides educational services to Indians who are one-quarter or more Indian by blood quantum. The larg est single service program of the BIA is education. A review of the statutory authorizations reflects the general approach to the BIA's education program.

The basic statutory authorities are the Snyder Act of 1921, the Johnson-O'Malley Act, and the recent Indian Self-Determination and Education Assistance Act. There are other statutes which deal with Indian education but these three provide basic authority and direction to the Bureau's education program.

The BIA has an exceedingly long history of working directly with Indian tribes at the community level. It is an operational agency which provides services to Indian tribes, including direct educational services to Indian children and operation of educational facilities. It also provides assistance to public and tribally operated schools serving Indian children.

The Bureau's education appropriation for fiscal year 1975 was in excess of $221 million. This amount included the following programs: Federal school operations; assistance to public schools; career devel opment-higher education, adult education, adult vocational education-and school construction.

Additionally $20 million from the Department of Health, Education, and Welfare was allocated for Indian youth attending BIA schools.

In fiscal year 1974, the BIA operated 194 schools with an enrollment of 49,524 Indian, Aleut, and Eskimo children and 19 dormitories for an additional 3,384 children attending public schools.

One hundred and four tribes or groups served by the BIA were represented in these schools during fiscal year 1974. Of the 49,524 children in Federal schools, 17,068 were in day schools and 32.456 were in boarding schools. These schools range in size from one-room rural schools to consolidated schools with enrollments of 500 or more.

The Bureau operates 17 off-reservation boarding schools enrolling primarily high school age students.

The program of BIA assistance, basically the Johnson-O'Malley program, to non-Bureau schools involves over 113.000 students and 34 contracts with tribes, 71 contracts with public school districts, and 9 contracts with States.

The distribution of funds for the JOM program is shown in appendix B of our prepared statement. Almost 70 percent of all Indian children served by the BIA attend public schools with about 26 percent attending Federal schools and the remainder attending private schools. For fiscal year 1974, 13 school programs were contracted by the BIA for operation by tribal groups. This arrangement makes it possible for a tribe to assume full control of the operation of previously Federal and private schools. Total enrollment in these schools was 2,469.

As part of the career development program, the Bureau provides scholarship assistance to Indians attending colleges and universities throughout the United States. For fiscal year 1975, there were 14,700 grantees and 1,500 graduates. There has been an increasing number each year of Indian youth wanting to attend colleges and universities. For fiscal year 1975, approximately $28 million was appropriated to BIA for new school construction. School construction is one area in which there is a great need. It is estimated that the total backlog of need for new schools approaches $500 million, but this amount has not been fully evaluated by the Department or the Bureau.

On January 4 of this year, the President signed Public Law 93-638, which is entitled "The Indian Self-Determination and Education Assistance Act." This is one of the most significant laws in the field of Indian affairs to be passed in many years. It has the basic purpose of strengthening the potential for Indian tribes to assume control of all BIA education programs as well as other BIA and Indian health service programs.

At this point, I would like to point out several activities in the Bureau that will better explain what is taking place. The implementation of Public Law 93-638 serves as a good springboard for discussing other developments in BIA education activities.

During the 1975 fiscal year, as a part of the administration's management by objectives program, the Bureau developed a project aimed at strengthening the process of turning schools over to tribal control. An objective was developed which stated: "By the end of fiscal year 1975, in at least one-fourth of the Bureau schools, by official action of a tribal or Alaskan village government, a choice of the management system will be made by those served by the schools."

The project was developed in a manner providing a process leading to an informed decision. In excess of 70 schools participated and so far 4 of the schools changed from Federal to a non-Federal status through tribal referendum. The project is being continued through fiscal year 1976.

In providing assistance to Indian children enrolled in public schools, the BIA has instituted procedures that place control of programs and funds under direction of tribal committees. The procedure was started some 4 years ago, but is not yet standard practice throughout the country.

It should be noted that the Bureau's objective, as delineated in its management by objective program, emphasizes the roll of the tribal governments.

In brief, the BIA has a long history of working with tribes toward greater and greater local control of education. Public Law 93-638 represents an innovation and has served as a catalyst on the long road. to Indian control of Indian education.