This document contains the text of a Senate hearing called to examine proposed amendments (S.1703) to the Indian Self-Determination and Education Assistance Act (Public Law 93-638) and includes the language of the proposed amendments. The bill primarily addresses federal funding for tribal governments, federal Indian affairs programs, and Indian economic development. Statements are given by Ross O. Swimmer, Assistant Secretary for Indian Affairs; Dr. Everett Rhoades, Director of the Indian Health Service; and William R. Allen, Chairman of the Jamestown Klallam Tribe. Two attorneys, Reid Chambers and Eric Eberhard, comment on the Federal Tort Claims Act as it applies to Indian tribes engaged in providing social services mandated by U.S. law. Issues discussed include the use of contracts as a mechanism to provide the tribes with federal funds, indirect cost determinations and provision of funds to cover them, and administration of the Act. Two reports, "Audit of Methods of Reimbursing Indian Organizations for Indirect Costs Incurred" and "Trend Analysis Using Data Available From the Indirect Cost Rate Negotiation Process with Indian Tribes," prepared by the Department of the Interior are appended. (DHP)