The U.S. Senate Committee on Indian Affairs heard testimony on the proposed reauthorization of the Elementary and Secondary Education Act (ESEA) as it relates to American Indian education. ESEA incorporates virtually all major programs constituting federal aid to education; of particular concern to American Indians and Alaska Natives is the title called the Indian Education Act, as well as titles providing for the education of economically disadvantaged children, bilingual education, and impact aid. Statements were received from U.S. Senators, administrators of the Bureau of Indian Affairs (BIA) and the U.S. Department of Education, and representatives of regional and national Indian education associations. Topics and issues discussed included mechanisms for developing tribal and BIA standards consistent with Goals 2000 standards, BIA budget preparation procedures, teacher salaries in BIA schools, parent participation in goal setting, the formula for allocating impact aid to public school districts serving Indian children, state-tribal relationships, Native language preservation and cultural maintenance, the definition of "Indian," appointment and status of the Director of the Office of Indian Education in the U.S. Department of Education, need for additional funding to BIA schools due to increasing student enrollments, eligibility of BIA schools for Chapter I funds, inability of tribal school boards to fire long-term BIA "status quo" employees at local schools, and needs for school construction and maintenance. An appendix contains additional materials on these topics as well as program descriptions, funding formulas, and information on the need for Indian Technical Assistance Centers. (SV)