National Drug and Alcohol Education Act of 1985

National Drug and Alcohol Education Act of 1985 - Directs the Secretary of Health and Human Services to make grants to States to assist local educational agencies (LEAs) in establishing and improving drug, alcohol, and tobacco education programs for elementary and secondary school students.

Directs the Secretary to make such grant payments to States in amounts based on relative numbers of children in average daily attendance in elementary and secondary schools. Authorizes States to reserve up to seven percent of such grant payment for State administration of drug, alcohol, and tobacco education programs.

Sets forth requirements for State applications for such grants. Requires State educational agencies (SEAs) to assure that LEAs will retain autonomy and flexibility in planning such programs. Requires SEAs to contribute, in cash, 20 percent of the cost of each program approved by the State.

Directs the SEA to allocate grant funds to LEAs on the basis of relative numbers of children in daily attendance in elementary and secondary schools. Directs the SEA, from the amount allocated to an LEA, to pay up to 75 percent of the cost of the approved program. Provides for reallocation of amounts not spent by LEAs within a specified time period.

Sets forth requirements for LEA applications for such allocations. Requires an LEA to pay five percent of the total program cost, in cash or in services, equipment, or facilities. Requires LEA planning for cooperation and coordination with Federal, State, and local police departments and agencies. Requires assurances that the LEA program will meet any special needs of low income and minority students.

Sets forth provisions for program participation of children from private schools.

Sets forth administrative provisions for audits and withholding of program payments to States. Directs the Secretary to report annually to the Congress on activities assisted under this Act.

Authorizes appropriations to the Secretary of Education to carry out this Act for FY 1985 through 1987.