The Title III program of ESEA that supports the arts in education is discussed. Included in the report are the following topics: (1) Analysis of Projects by Art Form Category (Visual Arts, Music, Theatre, Combinations of the Arts, and General Projects that Include the Arts); (2) Analysis of Projects by Educational Function; (3) Relative Emphasis by the States on Arts Projects; (4) Art Projects after Two Years of State Administration; and (5) Outlook for the Future. (DB)