This report summarizes the activities of the National Endowment for the Humanities (NEH) during fiscal year (FY) 1990, and includes lists of recipients of fellowships and grants, and programs supported by the Endowment. The report opens with a brief chronology of major events in the endowment's history under the heading, Twenty-fifth Anniversary--Milestones. This is followed by a Letter from the Deputy Chairman; How the Endowment Works" (a brief exposition); "Tyrannical Machines," a summary of a congressionally mandated report by NEH chairman Lynne V. Cheney on practices that need to be changed in U.S. education; The Charles Frankel Prize (an account of the prize and its 1990 recipients); and The Jefferson Lecture (a summary of the 1990 lecture by historian Bernard Lewis). Separate accounts of the various endowment divisions follow: Division of Education Programs; Division of Fellowships and Seminars; Division of General Programs; Division of Research Programs; Division of State Programs; Office of Challenge Grants; and Office of Preservation. Panelists in FY 1990; senior staff members of the endowment; and members of the National Council on the Humanities are listed next, and a summary of grants and awards for FY 1990; a financial report for FY 1990; and an Index of Grants conclude the document. (DB)