Dislocated Workers Act of 1985

Dislocated Workers Act of 1985 - Title I: Employment Impact of Federal Programs - Directs the Secretary of Labor to establish and maintain the capacity to estimate the employment and unemployment impact of Federal programs, and the termination of Federal programs, including programs of financial assistance. Requires that the impact reports be established and maintained on an individual program-by-program basis, with separate estimates in a State and sub-State level. Requires that such estimates include both the direct and indirect employment effects of Federal expenditures.

Title II: Dislocated Workers - Amends the Higher Education Act of 1965 (HEA) to direct the Secretary of Education to disregard, in any case in which a student is a certified dislocated worker under title III of the Job Training Partnership Act (JTPA), all equity in a single principal place of residence and the amount of unemployment benefits, for purposes of computation of assets and income for the proposed family contribution schedule for determination of Pell grants. Authorizes appropriations to cover such additional entitlements, but prohibits payment of such entitlements unless funds are provided for in an appropriation Act.

Amends HEA to provide that, in the case of any such dislocated worker identified under JTPA, determinations of need for purposes of the Guaranteed Student Loan program shall be based on current income.

Authorizes the Private Industry Council in every service delivery area (SDA) established under JTPA to provide information on training opportunities in the SDA, as well as the opportunities provided by this Act, to all individuals seeking training and retraining. Provides that acceptance of such training or retraining, and enrollment in a secondary institution with assistance made available pursuant to this title, shall be deemed to be acceptance of training with the approval of the State within the meaning of any other provision of Federal law relating to unemployment insurance. Excludes funds used for such purposes from specified cost limitations under JTPA.

Title III: Procurement Targeting in Labor Surplus Areas - Directs the head of each Federal agency which procures supplies and equipment at a rate in excess of $1,000,000,000 in FY 1982 to set targets, in each fiscal year, for such procurement within labor surplus areas, as defined by the Secretary of Labor.

Directs the Director of the Office of Management and Budget to report to specified congressional committees on: (1) the amount and percentage of contracts awarded by each Federal agency in labor surplus areas; (2) the impact of such contracts on the area unemployment rate; and (3) whether such contracts could be increased without adverse impact on Federal procurement.