A bill to provide for the establishment of the Arizona Indian Trust Fund, the disposition of certain lands under the jurisdiction of the Bureau of Indian Affairs, and for other purposes.

Directs the Secretary of the Interior to continue to operate the Phoenix Indian High School and maintain the school grounds and facilities until: (1) alternative arrangements have been made to meet the needs of the school's students; (2) certain funds are deposited into a fund established under this Act; (3) the Secretary has certified to specified congressional committees that the conditions contained herein have been met; (4) the Congress has approved closure of the school; and (5) the current school year is completed.

Authorizes and directs the Secretary to enter into agreements to: (1) transfer certain school lands in Arizona to the Veterans Administration; (2) sell an acreage of school lands at fair market value; and (3) exchange certain school lands for lands owned by the city of Phoenix and other lands located in Arizona or any other State.

Authorizes the Secretary, with respect to the sale of land to the city of Phoenix, to accept, in lieu of a lump-sum payment, annual payments over a specified period of time. Sets forth specified requirements for the Secretary in the event the Phoenix Indian High School is closed. Declares that the Secretary shall require: (1) persons who are sold school lands to agree to mitigate impacts on any building, site, or object which has historic or cultural values; and (2) the approval of the majority of the members of the Inter-Tribal Council of Arizona.

Establishes in the Treasury the Arizona Indian Trust Fund consisting of proceeds from the sale of school lands and income accruing on such sums. Directs the Secretary of the Treasury to invest such sums in interest-bearing deposits and securities. Limits uses of income from the Fund to: (1) supplemental educational and child-welfare programs and services for Indian tribes which are members of the Inter-Tribal Council of Arizona, Inc.; (2) the design and construction of related facilities; and (3) education, child-welfare, community development, and general administrative purposes. Prohibits use of any income earned by the Fund for scholarship grants for higher education.

Provides that the Secretary of the Interior shall require, as a condition for making grants to a public school district, the approval of the governing body of the Indian tribe.