Lifeline Telephone Service Act of 1985

Lifeline Telephone Service Act of 1985 - Amends the Communications Act of 1934 to establish a fund from which payments shall be made to exchange common carriers which provide lifeline telephone service. Directs the Federal Communications Commission to determine uniform surcharges on charges for interstate telephone toll service to provide sufficient funds for such payments beginning January 1, 1986. Provides that the amount of such payments to a carrier shall equal 50 percent of the amount of revenue lost by the carrier as a result of providing such service.

Directs each State communications commission to establish rules for the provision of lifeline service by carriers. Allows such a commission to restrict eligibility for such service based on low-income criteria accounting for the needs of the elderly, the unemployed, the disabled, and single heads of households.