National Drought Preparedness Act of 2005

National Drought Preparedness Act of 2005 - Establishes in the Office of the Secretary of Agriculture the National Drought Council which shall develop a comprehensive National Drought Policy Action Plan, evaluate and coordinate Federal drought-related programs, establish and improve the National Integrated Drought Information System (NIDIS), and undertake public awareness activities. Terminates the Council eight years after enactment of this Act.

Directs the Secretary to establish the National Office of Drought Preparedness to assist the Council.

Establishes in the Treasury the Drought Assistance Fund, which shall be used to pay the cost of technical and financial assistance to States, Indian tribes, local governments, watershed groups, and critical service providers for: (1) drought preparedness plans and drought mitigation; (2) expanding the technology transfer of drought and water conservation strategies and innovative water supply techniques; (3) developing post-drought evaluations and recommendations; and (4) supplementing the costs of implementing NIDIS-related actions undertaken pursuant to this Act.

Directs the Secretary to issue related implementing guidelines, including special requirements applicable to interstate watersheds.

Requires Federal agencies to develop and implement drought preparedness plans. Authorizes States, Indian tribes, local governments, watershed groups, and regional water providers to develop and implement such plans.

Amends the Robert T. Stafford Disaster Relief and Emergency Assistance Act to require the Director of the Federal Emergency Management Agency to reimburse States for costs of prepositioning wildfire suppression resources.