A bill to amend section 158 of title 23, United States Code, to make permanent the penalty for failure to comply with the national minimum drinking age, and for other purposes.

Makes permanent the law directing the Secretary of Transportation to withhold certain Federal-aid highway sums from States permitting persons under the age of 21 to purchase alcoholic beverages. Allows complying States to "grandfather" those between the ages of 18 and 21 who could legally purchase alcoholic beverages before the enactment of such law.

Provides guidelines for the apportionment of funds withheld on or before September 30, 1988, to States that subsequently comply with the national minimum drinking age. Requires that funds withheld from a State which has failed to comply within a certain period of time lapse and be made available for certain other projects.

Provides that non-Interstate funds withheld after September 30, 1988, shall be apportioned among the other States. Requires Interstate funds withheld after September 30, 1988, to be made available for certain other projects.