An act to amend the National Foundation on the Arts and the Humanities Act of 1965 and the Museum Services Act to extend the authorization of appropriations contained in such Acts, to amend the Arts and Artifacts Indemnity Act to make certain changes in the coverage provisions of such Act, and for other purposes.

Arts and Humanities Act of 1980 - =Title I: Amendments to National Foundation on the Arts and the Humanities Act of 1965= - Amends the National Foundation on the Arts and the Humanities Act of 1965 to authorize the Chairman of the National Endowment for the Arts to establish and carry out a program of loans to groups or individuals for projects and productions of substantial artistic and cultural significance. Includes cultural diversity as a factor to be considered by the Chairman in making grants or loans under such Act. Directs the Chairman to provide support for programs for the arts at the local level.

Defines "State" for the purpose of allocating funds in excess of the minimum grants to include specified jurisdictions having a population of 200,000 or more.

Permits the Chairman to enter into interagency agreements on a reimbursable or nonreimbursable basis to promote or assist with the arts-related activities of other Federal agencies. Permits the use of program funds for such purpose.

Authorizes the Chairman to establish and carry out a program of contracts with, or grants-in-aid to, public agencies and private nonprofit organizations on a national, State, or local level to assist cultural organizations and institutions and provide additional support for cooperative efforts undertaken by State art agencies and local art groups to promote effective arts activity at the State and local level. Eliminates financial assistance to State agencies for photography and film projects.

Sets forth two options for States regarding the formation of State humanities councils: (1) a State- designated entity in existence upon the enactment of this Act for which such State shall provide funds to match Federal financial assistance in specified proportions; and (2) a grant recipient within such State which will assure the placement of four State-appointed members on its governing body and will provide funding equal to the amount of Federal financial assistance received. Requires such entities, when applying to the National Endowment for the Humanities for grants, to provide assurances that the grant recipient will: (1) comply with the requirements of this Act; (2) expend funds solely on programs which effectuate the purposes of this Act; and (3) make such reports to the Chairman of the Endowment in such form, at such times, and containing such information as the Chairman may require.

Makes available to the Chairman of the National Endowment for the Humanities specified percentages of excess funds from the grants-in-aid programs to be allotted among specified grant recipients. Permits such Chairman to enter into interagency agreements on a reimbursable or nonreimbursable basis to promote or assist with the humanities-related activities of other Federal agencies. Permits the use of program funds for such purpose.

Permits such Chairman to unilaterally approve or disapprove any application for $30,000 or less, subject to Council delegation and review.

Places the Commissioner on Aging on the Federal Council on the Arts and the Humanities. Directs the Federal Council on the Arts and the Humanities to undertake studies and make reports which address the state of the arts and humanities, particularly with respect to their economic needs and problems. Directs the Council to report to Congress on the state of employment opportunities for professional artists, including the effectiveness of existing Federal programs and the need for new programs.

Directs the Council to report to Congress on the effectiveness and feasibility of expanding the indemnity program created by the Arts and Artifacts Indemnity Act.

Directs the Chairmen of the National Endowment for the Arts and for the Humanities to each report to Congress on the use, sale, or other disposal of property to carry out the purposes of such Act, the effectiveness of such use, sale, or disposition as an incentive for increasing the levels of non-Federal support, and the extent to which such activities of each Chairman result in undue administrative and financial burdens upon grant recipients.

Authorizes appropriations for the National Endowment for the Arts and for the Humanities for fiscal years 1981 through 1985. Sets forth a formula for determining the amount of such authorizations based upon the value of donated property and the total amounts received by grantees from non-Federal sources. Establishes authorization ceilings for fiscal years 1981-1985.

Directs the Chairmen of the Endowments to issue guidelines to implement the authorizations.

=Title II: Museum Services= - Amends the Museum Services Act to authorize the Director of the Institute of Museum Services to: (1) appoint up to one-fifth of the total number of full-time employees of the Institute without regard to civil service laws governing the appointment and compensation of Federal employees; and (2) enter into contracts and cooperative agreements with professional museum organizations to provide financial assistance to undertake projects designed to strengthen museum services. Limits such assistance for projects to a one year period. Prohibits the use of such assistance for operational expenses. Limits the aggregate amount of financial assistance to such organizations. Requires the Director to establish procedures for reviewing and evaluating grants, contracts, and cooperative agreements. Authorizes appropriations for such assistance for fiscal years 1981 through 1985.

Amends the Department of Education Organization Act to eliminate the authority of the Secretary of Education to eliminate or restructure the Institute of Museum Services.

=Title III: Amendments to Arts and Artifacts Indemnity Act= - Amends the Arts and Artifacts Indemnity Act to increase from $250,000,000 to $400,000,000 the aggregate amount covered under indemnity agreements. Increases the amounts deductible under such agreements if the estimated value of the covered items exceeds $2,000,000.