To implement the President's 1989 National Drug Control Strategy.

Amends the Omnibus Crime Control and Safe Streets Act of 1968 to prohibit Federal assistance to any State that has not implemented a drug testing program for targeted classes of arrestees, prisoners, and persons on conditional or supervised release before or after conviction.

Directs the Attorney General to promulgate regulations for such programs based in part on scientific and technical standards determined by the Secretary of Health and Human Services to ensure the reliability and accuracy of test results. Specifies that such regulations may include guidelines or specifications concerning: (1) the classes of persons to be targeted for testing; (2) the drugs to be tested for; (3) the frequency and duration of testing; and (4) the effect of test results in decisions concerning the sentence, conditions to be imposed on release before or after conviction, and the granting, continuation, or termination of such release.

Amends the Public Health Service Act to require a State, in order to receive the drug abuse portion of its allotment under such Act for a fiscal year, to develop, implement, and submit an approved Statewide Drug Treatment Plan. Requires such Plan to include a single, designated State agency for formulating and implementing the Plan and a description of: (1) the mechanisms used to assess the needs and make funding allocations for drug treatment throughout the State; (2) a statewide plan to expand treatment capacity; (3) performance-based criteria to be used to allocate funds; (4) drug-free patient and workplace programs (which must include drug testing) to be utilized in drug treatment facilities and programs; (5) actions to be taken to improve the referral of drug users to appropriate treatment facilities; (6) the program of in-service training to be implemented for employees of treatment facilities receiving Federal funds; (7) the plan to be implemented to coordinate drug treatment facilities with other social, health, correctional, and vocational services; and (8) the plan to be implemented to expand and improve efforts to contact and treat expectant women who use drugs and provide appropriate followup care to their affected newborns.

Requires such Plan to be submitted to the Secretary annually for review and approval. Authorizes the Secretary to review, approve, disapprove, and propose changes to State plans.

Requires each State to submit such reports as the Secretary may require and to comply with such additional provisions as the Secretary may find necessary to verify the accuracy of such reports.

Authorizes the Secretary to waive any or all requirements of this Act with respect to the Plan upon the written request of a State, provided that the State implements an alternative treatment plan that fulfills the objectives of this Act.

Amends the Higher Education Act of 1965 to make ineligible for Federal funds or assistance any institution of higher education which fails to certify to the Secretary that it has adopted and implemented a program to prevent illicit drug use and alcohol abuse by students and employees that includes the annual distribution to each student and employee of: (1) standards of conduct that clearly prohibit the unlawful possession, use, or distribution of illicit drugs and alcohol by students and employees on its property or as part of its activities; (2) a description of applicable sanctions under local, State, or Federal law for unlawful possession or distribution of such drugs; (3) health risks associated with such use; (4) any drug or alcohol counseling, treatment, or rehabilitation programs available to employees or students; and (5) a clear statement that the institution will impose sanctions, and a description of such sanctions, up to and including expulsion or termination of employment and referral for prosecution. Requires such program to provide for a biennial review by the institution to determine the program's effectiveness, to implement changes as needed, and to ensure that sanctions are consistently enforced. Requires: (1) each institution that provides such certification to make a copy and the results of such biennial review available, upon request, to the Secretary and to the public; and (2) the Secretary to publish regulations to implement and enforce this Act, including regulations providing for periodic review of programs and sanctions, up to and including the termination of financial assistance, for institutions of higher education that fail to implement their programs or to consistently enforce their sanctions. Allows sanctions to include the completion of an appropriate rehabilitation program.

Amends the Drug-Free Schools and Communities Act of 1986 to make ineligible for Federal funds or assistance any local educational agency which fails to certify to the State educational agency that has adopted and implemented an analogous program to prevent the use of illicit drugs and alcohol by students or employees.

Authorizes appropriations for FY 1990 through 1993 for the Special Forfeiture Fund.

Waives provisions of the Foreign Assistance Act of 1961 and the Foreign Operations, Export Financing, and Related Appropriations Act, 1989 to make certain appropriated funds available for narcotics-related activities in Colombia, Bolivia, and Peru.