Amends the Juvenile Justice and Delinquency Prevention Act of 1974 to authorize appropriations through FY 1992. Authorizes additional appropriations for FY 1989 through 1992 to carry out prevention and treatment programs relating to juvenile gangs.

Authorizes the Administrator of the Office of Juvenile Justice and Delinquency to make grants to public and private organizations to establish programs involving families and communities designed to provide: (1) prevention of participation of juveniles in criminal gang activities; (2) promotion of juvenile involvement in lawful activities; (3) treatment of juvenile gang members; (4) expansion of services relating to illegal use of controlled substances and their analogues by juveniles; and (5) establishment of other support activities to prevent or reduce criminal juvenile gang activity.

Sets forth grant application requirements and procedures.

Requires an annual report to the Congress on the status and accomplishments of programs.