State and Local River Conservation Act of 1985

State and Local River Conservation Act of 1985 - Authorizes the Secretary of the Interior to make grants to States for the establishment and operation of State and local programs to conserve the natural and environmental values of designated rivers or river segments, including river management plans, land conservation strategies, regulations, and demonstration projects. Allocates and restricts the use of such funds. Authorizes appropriations.

Requires States and local governments to submit programs and river assessments to the Secretary to be eligible for grants.

Permits the Secretary to make grants to carry out State river assessments. Authorizes appropriations for such grants.

Authorizes landowners to transfer approved lands or land interests to tax-exempt organizations to conserve or enhance the value of rivers.

Authorizes the Secretaries of the Interior and Agriculture and other Federal agency heads to encourage and assist the use of volunteers and volunteer organizations to conserve and manage rivers throughout the United States.