A policy of drug testing for Federal employees in sensitive positions includes job shifts for those who refuse to be tested and a treatment option for those who test positive. Complications are the absence of Federal funds for drug treatment programs and the unreliability of drug tests. Government unions oppose the plan. School drug education programs and the suspension of drug users and pushers are being encouraged by the Reagan administration. Preventive education has not proven effective in other areas, and there is no persuasive evidence that drug education programs have reduced the demand for drugs. The Reagan administration will encourage employers to test employees for drug use. As in the case of such testing for Federal employees, the unreliability of drug tests may lead to the unjust treatment of workers who falsely test positive. Administration officials have hinted at stiffer drug penalties, including mandatory minimum prison terms for some dealers and mandatory life sentences for convicted drug racketeers. Attacks on the supply side of the drug market are expensive and have yet to stem the tide of drug supplies. International policy is to encourage drug-source countries to attack the problem under the threat of losing U.S. aid. The cost of the Reagan drug policies is uncertain, and the emphasis on attacking the demand side of the market is apparently not going to be backed with significant Federal funding.