The effects of drug and alcohol use by pregnant women which concern state policymakers are discussed in this booklet. Topics discussed include: (1) the effects of fetal alcohol syndrome on infants and children, as well as the effects on children of drug use by mothers during pregnancy; (2) initiatives aimed at helping these children; (3) women addicts and alcoholics, including statistics which show that substance abuse during pregnancy appears to cut across racial and socioeconomic lines; (4) initiatives aimed at helping the mother; (5) the relationship of substance abuse and child abuse; (6) state action concerning pregnant women who are suspected of using a controlled substance; (7) foster care or care outside the home of children of drug addicts; (8) state foster care initiatives; (9) the concerns of educators about drug-exposed children in the school systems; (10) miscellaneous state actions and task forces; (11) legal issues; (12) federal actions; and (13) implications to the states of perinatal exposure to drugs and alcohol. Appendix 1 lists relevant sections of statutes of seven states that specifically address alcohol and drug use as they relate to infants. Thirty footnotes and 10 sources consulted are listed. (ABL)