National Security Reform Act of 1985

National Security Reform Act of 1985 - Directs the President to appoint a commission to examine and report to the Congress within 90 days of enactment of this Act on the impact of the Freedom of Information Act (FOIA) on U.S. counterintelligence activities and to recommend appropriate changes to the FOIA to protect U.S. security while ensuring the civil liberties of U.S. citizens.

Limits the number of diplomats and agents within the United States from a foreign country to a number equal to the number of U.S. diplomats and agents in that foreign country.

Directs the Department of Defense to conduct random counterintelligence-scope polygraph examinations to assist in determining the eligibility of any individual for access to any classified information. Grants the agency the right to determine eligibility or ineligibility for access to classified information. Authorizes appropriations to upgrade polygraph training capability. Prohibits using the polygraph results as the sole basis for denying eligibility for clearance of access to any classified information. Authorizes denying or withdrawing clearances of persons who refuse to submit to polygraph examinations.

Amends the Uniform Code of Military Justice to restrict the death penalty for an act of espionage in peacetime to cases involving the Soviet Union or any other communist country and where the documents or information involved is classified.

Imposes a mandatory life term of imprisonment for espionage involving the Soviet Union or any other communist country. Prohibits any probation or suspension of sentence for individuals convicted of espionage involving the Soviet Union or other communist country, and denies such individuals any opportunity for parole.