"Part 86 of the Drug and Alcohol Abuse Prevention Regulations (Education Department General Administrative Regulations), requires that, as a condition of receiving funds or any other form of financial assistance under a federal program, an institute of higher education (IHE) must 'adopt and implement a drug prevention program as described in § 86.100 to prevent the unlawful possession, use, or distribution of illicit drugs and alcohol by all students and employees on school premises or as part of any of its activities.'
"Changing drug and alcohol policies on campus has never affected federal funding to institutes of higher education. In fact, according to the U.S. Department of Education documentation provided to SSDP on May 2, 2012, no college or university participating in the Federal Student Aid programs has ever lost Title IV eligibility as a result of non-compliance with the DFSCA."

Source

"The Drug-Free Schools and Communities Act: Why Changing Campus Drug and Alcohol Policies Doesn’t Mean an End to Federal Funding," Students for Sensible Drug Policy (Washington, DC: May 2012).