H.R.3438: To amend the Safe and Drug-Free Schools and Communities Act to authorize the use of grant funds for gang prevention, and for other purposes.

Bullying and Gang Reduction for Improved Education Act - Amends the Elementary and Secondary Education Act of 1965 to add bullying and gang prevention to the violence and drug abuse prevention activities currently supported under the Safe and Drug-Free Schools and Communities program.

Provides that, in addition to fostering a safe and drug-free learning environment, such program should facilitate healthy, physically active lifestyles.

Makes local park and recreation agencies eligible for funding under the program's mentoring programs for children.