This paper brings together information on the conditions and needs of children who have been exposed to drugs, federal programs that affect the well-being of these children, and policy questions that need resolution. Discussion concerns: (1) characteristics of infants who have been exposed to drugs and their families, including prevalence and epidemiology, medical and developmental outcomes, and home environment; (2) the impact of this population on medical and foster care, child welfare, and developmental and educational service systems; (3) service needs of these children, such as preventive, pre- and perinatal, and family and child development services; (4) efforts to help children who have been exposed to drugs and their families. Included are descriptions of programs at the federal, state, and local levels; legal responses to the problem; and data and research needs. A table lists federal efforts affecting children who have been exposed to drugs. The paper concludes with a discussion of policy questions concerning efforts to satisfy the needs of children who have been exposed to drugs and their families. These questions concern limited availablity and effectiveness of drug treatment, diagnosis and reporting of exposure to drugs, and ways to provide care for children who have been exposed to drugs and to protect them. Appendix A provides profiles of federal programs affecting these children. Appendix B lists Congressional hearings on maternal drug abuse.(RH)