Neutrality in Federal Expenditures Act of 1985

Neutrality in Federal Expenditures Act of 1985 - Prohibits the disbursement of Federal funds to any tax-exempt organization which engages in political advocacy or to any affiliate of such an organization. Prohibits the use of Federal funds for political advocacy. Requires any organization which violates such prohibition to reimburse the Treasury in the total amount of Federal funds received for any program, grant, contract, or other source from which the funds used for political advocacy were obtained.

Directs each Federal agency and instrumentality disbursing Federal funds to require each recipient organization to disclose the following information to the public: (1) its bylaws and articles of incorporation; (2) a list of all government agencies from which it receives or has requested funds, the funding level, and the purpose of the funding; (3) the names, addresses, and resumes of the board of directors and operating officers of the organization; (4) the businesses conducted by any other entity upon whose board of directors any of the directors of the organization also serve; (5) a list of the lobbyists of the organization and its affiliates; and (6) a copy of each of its publications. Requires each agency and instrumentality to audit each recipient organization to assure compliance with this Act.

Requires any organization to satisfy such disclosure requirements and to certify noninvolvement in political advocacy prior to the receipt, renewal, or extension of any source of Federal funds. Makes any intentional misrepresentation under such disclosure or certification requirements a felony.

Makes it the duty of each agency and instrumentality to establish that any prospective recipient organization does not and will not engage in political advocacy and to require that recipient organizations comply with disclosure and certification requirements, including a requirement that any individual recipient certify that he or she has never been disbarred from receiving Federal funds.

Sets forth the penalties for intentional violations of this Act.

Authorizes the United States or any private citizen to commence a civil action in an appropriate U.S. district court against any recipient organization or individual for violations of this Act. Entitles a prevailing plaintiff to recover: (1) the amount of funds expended for political advocacy, or three times such amount if the judgment is entered for the United States; (2) equitable relief; (3) an order disbarring such recipient from receiving any other Federal funds; (4) legal fees and investigatory costs; and (5) punitive damages.