Targeted Unemployment Compensation Benefits Act of 1985

Targeted Unemployment Compensation Benefits Act of 1985 - Amends the Federal-State Extended Unemployment Compensation Act of 1970 to revise the extended unemployment compensation program.

Provides that the applicable limit for the number of weeks covered by an individual's compensation account shall be based upon the applicable limit in the area in which the individual resides for the benefit duration period in which the individual's eligibility period begins.

Provides for specified extended benefit duration periods for areas within a State which experience over certain periods rates of total unemployment exceeding 13 percent, 12 percent, 11 percent, ten percent, and nine percent, respectively.

Provides that Federal payments to States shall be based on the following applicable percentages of the sum of the sharable extended compensation and the sharable regular compensation paid to individuals under the State law: (1) 70 percent with respect to compensation paid during a 13 percent period in an area; (2) 60 percent for a 12 percent period; (3) 50 percent for an 11 percent period; (4) 40 percent for a ten percent period; and (5) 30 percent for a nine percent period.

Amends Social Security Act provisions relating to the Extended Unemployment Compensation Account in the Unemployment Trust Fund. Authorizes appropriations to such account (in addition to specified amounts currently transferred thereto) in an amount equal to: (1) 80 percent of the Federal payments required to be made to States with respect to compensation paid during a 13 percent period in areas of such States; (2) 60 percent for a 12 percent period; (3) 40 percent for an 11 percent period; and (4) 20 percent for a ten percent period. Provides that such appropriations to the account shall not be required to be repaid.

Adds as a condition of eligibility for extended compensation that the individual, if requested to do so, participate in an intensive one-week job search program administered by the Employment Service.

Repeals the Federal Supplemental Compensation Act of 1982.