Dylan Lee James Act

Family Opportunity Act of 2005 or Dylan Lee James Act - Amends title XIX (Medicaid) of the Social Security Act (SSA) to give States the option of allowing families of disabled children to purchase Medicaid coverage for such children.

Authorizes the Secretary of Health and Human Services to conduct demonstration projects under which up to ten States are awarded grants, on a competitive basis, to test the effectiveness in improving or maintaining a child's functional level and cost-effectiveness of providing coverage of home and community-based alternatives to psychiatric resident treatment for children enrolled in the Medicaid program.

Amends SSA title V (Maternal and Child Health Services) to make appropriations to the Secretary for special projects of regional and national significance for development and support of family-to-family health information centers.

Amends SSA title XIX to provide for the restoration of Medicaid eligibility to certain SSI (Supplemental Security Income) (SSA title XVI) beneficiaries under age 21.