The Johnson-O'Malley (JOM) Act of 1934, amended in 1936, authorizes the Secretary of Interior to enter into a contract with any state which has legal authority and responsibility for the education of American Indian children residing there. The Superintendent of Public Instruction, State of Washington, is legally responsible for state schools and therefore the official contractee for JOM funds. This 1972 Annual Report on Indian education programs discusses: (1) JOM's historical background; (2) contemporary policy; (3) individual project descriptions; (4) Indian enrollment; (5) JOM project emphases--fiscal year 1972; (6) JOM budget approvals in 7 major areas, e.g., academic achievement and supplementary student support; (7) dropout statistics; and (8) statements from local people in different school districts. (FF)