Federal policy under both Democratic and Republican administrations has consistently directed most of the funding to enforcement, interdiction, and overseas programs to eliminate drug production. Despite these efforts, the availability and purity of cocaine and heroin are at all-time highs. Drug use among young teenagers is increasing rapidly. However, most children do not receive effective drug prevention teaching, although such programs can reduce new drug use by half. In addition, although 1 million prison inmates have serious drug habits, drug treatment is not readily available inside the criminal justice system or in many communities. The current Congressional debate suggests that prevention and treatment will receive even less support in 1996, although the public remains more pragmatic and less ideological than politicians. The $14 billion Federal drug budget does not need to be increased, but needs to be spent more wisely on cost-effective approaches, promising strategies such as drug courts, and research and development. Figures and program descriptions