A bill to amend title IV of the Older Americans Act of 1965 to establish demonstration projects for community care preventive health services.

Amends the Older Americans Act of 1965 to direct the Commissioner on Aging to make grants to, and enter into contracts with, States to cover 50 percent of the cost of demonstration projects providing, through FY 1992, community care preventive health services which include: (1) exercise and physical therapy services; (2) home injury control services; (3) mental health services for older individuals who are at high risk of suffering depression; and (4) nutritional counseling services.

Requires the Commissioner to select, for each of FYs 1988 through 1991, five States to submit proposed community care preventive health services demonstration projects which shall then be rejected or approved by the Commissioner. Authorizes appropriations for FY 1988 through 1991 to assist States in developing project proposals and for FY 1989 through 1992 for the conduct of approved projects.