To amend the Omnibus Crime Control and Safe Streets Act of 1968 to allow grants to develop more effective programs to reduce juvenile gang participation and juvenile drug trafficking.

Amends the Omnibus Crime Control and Safe Streets Act of 1968 to authorize the Director of the Bureau of Justice Assistance to make grants to assist States and local governments (or combinations thereof) in planning, operating, coordinating, and evaluating projects for the development of more effective programs, including education, prevention, treatment, and enforcement programs, to reduce: (1) the formation or continuation of juvenile gangs; and (2) the use and sale of illegal drugs by juveniles.

Specifies uses of such grants, including: (1) reducing juvenile participation in drug-related crimes (particularly in and around elementary and secondary schools) and juvenile involvement in organized crime, drug- and gang-related activity (particularly activities that involve the distribution of drugs by or to juveniles and such activity in public housing projects); (2) developing new and innovative means to address the problems of juveniles convicted of serious, drug- and gang-related offenses; (3) promoting the involvement of all juveniles in lawful activities; (4) providing pre- and post-trial drug abuse treatment to juveniles in the juvenile justice system and education and treatment programs for youth exposed to severe violence in their homes, schools, or neighborhoods; and (5) identifying promising new juvenile drug demand reduction and enforcement programs, replicating and demonstrating such programs to serve as national, regional, or local models, and providing technical assistance and training to public or private organizations to implement similar programs.

Sets forth application requirements.

Authorizes appropriations.