Social Welfare Amendments of 1985

Social Welfare Amendments of 1985 - Amends part A (Aid to Families With Dependent Children) of title IV of the Social Security Act to exclude the needs of employable parents or caretakers when determining need for AFDC purposes, if the youngest child has attained age 16.

Repeals the current part C (Work Incentive Program) of title IV of the Act. Requires a State under part A to provide that each applicant for AFDC must participate in any one or more of the following employment related activities to which the State may refer the applicant: (1) an employment search program; (2) the State's community work experience program; (3) an alternative employment-directed program; (4) work supplementation; and (5) training activities under the Job Training Partnership Act. Provides for reductions in the amounts payable to a State if certain percentages of those required to participate in such employment related activities do not participate. Exempts certain individuals from participation in such activity including: (1) a child who is under age 16 or attending school full-time; (2) an individual who is over age 60, incapacitated, or providing home care for an individual who is incapacitated; (3) a parent personally providing care for a child under the age of six; (4) an individual working at least 30 hours a week; and (5) certain pregnant women.

Requires AFDC applicants to seek work while their applications are pending.

Requires a State's AFDC plan, subject to certain exceptions, to provide that minor unmarried caretaker parents must live with their parents in order to receive AFDC.

Directs the Secretary of Health and Human Services to make a grant to each State for the proper and efficient administration of its AFDC plan. Directs the Secretary, in addition, to make grants to States carrying out employment related programs and demonstration projects.

Authorizes appropriations.