To assist Congress and administrators in the Department of Education to manage Part A of the Indian Education Act and to make decisions with respect to its future, researchers evaluated the operations and effectiveness of the program for meeting the special educational and cultural needs of Indian students. Between 1980 and 1983, researchers gathered and analyzed data from interviews and files of a stratified random sample of 115 Part A projects. The 1981-1982 median project served 119 students with a budget of $26,450, 1.4 professional staff, and active volunteers from the Indian community. Most project offerings correlated highly with educational needs voiced by Indian parents and communities. The most common activities were tutoring and academic services (80%), Indian history and cultural instruction (64%), counseling and career guidance (48%), and home-school liaison activities (38%). Satisfaction with the program was high among parent committees, district administrators, principals, and project directors, but lower among Indian leaders. Program activities improved attendance, math and reading scores, and cultural interest of Indian students, but not school dropout rates. The program also increased Indian parent involvement and interest in the schools. Overall, the small supplemental program had a generally positive effect on Indian education. (SB)