Program implementation under the American Indian Education Act of 1972 (IEA) is evaluated in this 1975 progress report via narrative and tabular data. Presenting an executive summary and reviews of the first and second years of progress, this third year evaluation focuses upon: the extent to which Indian children have received IEA services; IEA services addressed to the special educational needs of participating Indian children; the effects of IEA services on Indian children; performance objectives associated with IEA programs; effectiveness of the planning/evaluation process; effects of the Federal delivery system; and changes in pupil achievement. Major third-year recommendations are presented as follows: develop and implement a service and dissemination network to implement the findings of pilot, planning, and demonstration projects in the school; continue recruitment, training, and placement of Indian teachers/administrators; consider extending the potential benefits of the Act to Indian children and youth not now reached; develop a management reporting system to insure Indian community participation in local education agency projects; develop a national needs assessment to identify Indian educational needs as influenced by the total environment; develop and implement more extensive delivery of technical assistance at all levels of IEA projects. (JC)