Port Security Grants Act of 2005

Port Security Grants Act of 2005 - Requires the Secretary of Homeland Security, acting through the Office of State and Local Government Coordination and Preparedness, to establish a grant program to fairly and equitably allocate Federal financial assistance: (1) to help implement Area Maritime Transportation Security Plans; (2) to correct port security vulnerabilities; and (3) for non-Federal projects contributing to the overall security of an individual port or system of ports.

Directs the Secretary, in awarding grants under this Act, to: (1) take into account national economic and strategic defense considerations of individual ports; and (2) strongly encourage efforts to promote integration of port-wide security, information and intelligence sharing, and joint efforts.

Sets forth authorized and prohibited uses of grant funds.

Limits the Federal share of funding for eligible projects to 75 percent of the total cost, subject to specified exceptions.

Requires the Secretary to: (1) establish grant application procedures and requirements, subject to specified minimum standards; and (2) submit reports on security funding and compliance to specified congressional committees.

States that amounts authorized to be appropriated by this Act (for FY 2007 through 2012) shall originate from duties collected by U.S. Customs and Border Protection.