National Excellence in Education Act of 1985

National Excellence in Education Act of 1985 - Amends Chapter 2 (Consolidation of Federal Programs for Elementary and Secondary Education) of the Education Consolidation and Improvement Act of 1981 (ECIA) to require certain minimum standards of academic achievement and school administration as conditions for eligibility to receive Federal funds. Requires, beginning January 1, 1987, that no State or local educational agency (LEA) shall be eligible to receive funds under chapter 2 (except for subchapter A basic skills development) unless there is established within each public elementary and secondary school within its jurisdiction: (1) an average school day of not less than five hours; (2) a system for student promotion to higher grades based on academic achievement and classroom attendance; (3) a school system for evaluating teacher competence prior to hiring; and (4) a school system for determining teacher salaries based on merit and academic achievement.

Amends the Carl D. Perkins Vocational Education Act to set similar restrictions on the eligibility of States for Federal funds under such Act.

Establishes the National Excellence in Education Fund under the Authority of the Secretary of Education to make awards to States and LEAs which demonstrate exceptional improvement in academic achievement. Directs the Secretary to appoint a National Commission on Excellence in Education to assist and advise in the selection of recipients for the National Excellence in Education Awards. Sets forth provisions relating to Commission membership. Requires that members have, or have had, children enrolled in public schools. Authorizes and encourages the Secretary to include current or former school administrators among the members. Sets forth provisions relating to allotment of awards. Directs the Secretary to report annually to Congress on allotments from the Fund. Authorizes appropriations for such allotments for FY 1987 through FY 1989.

Includes among those programs which the Secretary must first fund from ECIA discretionary funds a research project to develop national minimum standards of achievement for students in each elementary and secondary school grade in the subjects of mathematics, science, history, English, and foreign languages.