Military Family Act of 1985

Military Family Act of 1985 - Title I: Department of Defense Family Support Programs - Establishes in the Office of the Secretary of Defense an Office of Family Policy to coordinate programs and activities of the military departments as they relate to military families. Transfers the Military Family Resources Center within the Department of Defense.

Makes travel and transportation allowances the same for members of the armed forces as those applicable to civilian employees. Requires temporary lodging expenses to be paid to such military members transferred within the United States or to a duty station outside the United States other than Hawaii or Alaska. Authorizes the payment of a transportation allowance to student dependents of military members assigned a permanent duty station in Alaska or Hawaii. Prohibits such transportation allowance when the dependent child is attending a school in Alaska or Hawaii.

Requires the Secretary of Defense to allow members of the Selected Reserve and their dependents to use commissary and exchange stores for one day for each day of training duty performed by the member.

Requires the Secretary of each military department to establish a program to provide relocation services to armed forces members who make a permanent change of station. Directs the Secretary concerned to enter into contracts with outside entities for the provision of such services. Establishes at each training installation a youth sponsorship program to facilitate the adaptation of transferred members' children to new surroundings.

Directs the Secretary of Defense to allow limited commercial activities to be carried out from military family housing units by members and their dependents.

Requires the Secretary to provide child-care facilities on military installations on a 24-hour-a-day basis when needed. Requires the Secretary, within one year of enactment of this Act, to report to the Congress on ways for spouses of military members to obtain employment at child-care facilities.

Authorizes the Secretary to establish dental benefit plans for spouses and children of military members who are on active duty for more than 30 days. Requires the member to pay a part of the plan's cost, as determined by the Secretary, to be deducted from the member's basic pay. Outlines the dental benefits to be included in such plan.

Title II: Assistance to Military Families - Provides, for Federal income tax purposes, for the deductibility of amounts attributable to tax-free housing allowances.

Provides that the Secretary shall require that all Department of Defense non-appropriated fund activities give preference in hiring to dependents of military members. Provides the same hiring preference in Department of Defense civil service positions for spouses of such military members. Outlines conditions for such preference.

Repeals Federal law which transferred overseas defense dependents schools to the Department of Education.

Provides that, as a condition for States to receive grant assistance to carry out child abuse and neglect prevention and treatment programs, such States must provide the Secretary of Defense with reports of suspected child abuse and neglect where the person having care of the child is a member (or spouse of a member) of the armed forces.

Title III: Reports - Requires the Secretary of Defense, within one year of enactment of this Act, to report to the Congress on the availability and affordability of off-base housing for military members. Requires the Secretary, on the same date, to also report to the Congress on recommendations to facilitate the smooth transition between schools with differing graduation requirements of dependent children of military members making a permanent change of station.

Title IV: Effective Date - Sets forth the effective date of this Act.