It comes at the same time as Home Office research shows that young people feel they are being let down by drugs service provision. Three studies all show that young people are concerned that the level and quality of service is inadequate.
The Home Office funding will go to treatment and drug services that tackle class A drug use, in plans that will span three years.
Local authorities will receive 22m to provide specialist workers and training services for young people at risk of a life of drugs, while 15m will go towards funding 50 Positive Futures projects, which use sport to steer young people away from drug misuse.
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