Arts, Humanities, and Cultural Affairs Act

Arts, Humanities, and Cultural Affairs Act - Title I: Arts and Humanities - Amends the National Foundation on the Arts and the Humanities Act to authorize the Chairman of the of the National Endowment for the Humanities to establish grants-in-aid programs in each State to develop and promote the humanities.

Sets forth standards relating to program administration for plans submitted by persons and entities seeking assistance.

Prohibits the Chairman from making grants to more than one person or entity in any State.

Specifies a formula for alloting funds appropriated for grants-in-aid.

Authorizes appropriation to the National Endowment for the Arts and to the National Endowment for the Humanities of specified sums for fiscal years 1977 and 1978 and such funds as may be necessary for fiscal years 1979 and 1980. Revises the maximum amount which may be appropriated to such Endowments as grants matching amounts received through donation, bequest, and devise.

Requires the President to appoint members of the National Council on the Arts and members of the National Council on the Humanities with the advice and consent of the Senate.

Title II: Museum Services - Museum Services Act - Establishes within the Department of Health, Education, and Welfare an Institute of Museum Services, consisting of a National Museum Services Board and a Director of the Institute.

Authorizes the Director, subject to the advice of the Board, to make grants to museums to increase and improve museum services. Confers authority to the Institute to accept grants, gifts, or bequests of money for immediate disbursement in furtherance of the functions of the Institute.

Directs the Federal Council on the Arts and Humanities to advise and consult with the Board and the Director on major problems incurred by the Institute and to coordinate the Institute's policies and activities with those of the National Endowment for the Arts and the National Endowment for the Humanities.

Authorizes the appropriation of funds for grants by the Institute for fiscal years 1977 through 1980.

Title III: Challenge Grant Program - Authorizes the Chairman of the National Endowment for the Arts to establish a program of contracts with, or grants-in-aid to, public agencies and private nonprofit organizations for the purpose of assisting cultural organizations and institutions and promoting citizen involvement with such bodies.

Authorizes the appropriation of funds through fiscal year 1980 to carry out such program.