Older Americans Food Stamp Reform Act of 1985

Older Americans Food Stamp Reform Act of 1985 - Amends the Food Stamp Act of 1977 to permit elderly or disabled food stamp recipients to use food stamps at restaurants (currently limited to private establishments that contract with the State agency and provide concession-price meals).

Permits recipients who are unable to purchase and prepare their own meals to be considered as a separate household regardless of the income level of the caretaker family.

Allows an elderly or disabled recipient to deduct as a medical expense the excess costs of a physician-advised special diet.

Makes supplemental security income and aid to families with dependent children recipients categorically eligible for food stamps.

Makes the monthly medical expense threshold the lesser of $35 or five percent of gross income (currently $35 a month).

Raises financial resource ceilings from: (1) $1500 to $2250 for nonelderly households; and (2) $3000 to $3500 for elderly households.

Authorizes recipients to maintain separate burial funds of up to $1500.

Requires (50 percent reimbursed) outreach programs for the elderly and disabled.

Provides for food stamp program and application information to be available at Social Security Administration offices.