For the past 70 years, Federal policy for controlling illegal drug abuse has focused on two distinct strategies: supply reduction through law enforcement efforts and demand reduction through prevention, education, and treatment. Currently, the emphasis is heavily weighted toward law enforcement activities, with 75 percent of Federal expenditures spent on law enforcement and only 25 percent spent for treatment, education, and prevention. Federal underfunding of treatment is based partially upon the suspicion that treatment programs for substance abusers are of dubious value. The National Association of State Alcohol and Drug Abuse Directors examined the evidence of more than 15 years of research on the effectiveness of substance abuse treatment. The evidence decisively shows that alcohol and other drug abuse treatment is effective. Drug treatment reduces drug abuse, increases employment, improves psychological adjustment, and decreases crime as well as other negative drug-related behaviors. The evidence further shows that public expenditures for substance abuse treatment are wise and prudent investments, despite the fact that substance abuse is a chronic condition that typically requires multiple treatment episodes for the individuals affected. The cost benefits of treatment programs are especially clear when compared to the effects of ignoring treatment needs. A 48-item bibliography and appended data on alcohol and drug treatment admissions by State (fiscal year 1988), expenditures for State-supported alcohol and drug abuse services by State and type of program activity (fiscal year 1988), and expenditures for such programs by State and funding source (fiscal year 1988)