National Highway Fatality and Injury Reduction Act of 1989

National Highway Fatality and Injury Reduction Act of 1989 - Directs the Secretary of Transportation to withhold a certain percentage of Federal-aid highway funds from apportionment to any State where it is lawful to: (1) operate or ride a motorcycle without wearing a motorcycle helmet; or (2) occupy a front seating position in a passenger car without using a safety belt or child safety restraint while the vehicle is in forward motion. Provides that such funds shall remain available to such State according to certain guidelines.

Directs the Secretary to make grants to States which adopt and implement effective programs to increase traffic safety by ensuring that persons riding on motorcycles wear helmets and receive adequate rider training and that persons riding in other motor vehicles not only use safety belts and child safety restraints but use them correctly. Specifies that such grants may only be used by recipient States to implement and enforce such programs.

Declares that such grants may not be made unless the State enters into agreements with the Secretary to ensure that its aggregate expenditures for motorcycle and child passenger safety programs and safety belt programs will be maintained at or above the average level of such expenditures for the two fiscal years preceding this Act's enactment.

Provides that States may receive such grants for not more than three fiscal years. Sets forth eligibility criteria.

Authorizes appropriations for FY 1991 through 1993 out of the Highway Trust Fund.