Handicapped Children's Protection Act of 1985

Handicapped Children's Protection Act of 1985 - Amends the Education of the Handicapped Act to authorize the award of a reasonable attorney's fee as part of the costs to the parents or guardian of a handicapped child or youth who is the prevailing party in a civil suit under such Act to protect the child's right to a free appropriate public education.

Requires the party seeking such an award to submit an application, including an itemized statement of such fees and expenses from the attorneys or expert witnesses.

Authorizes the court to: (1) increase the amount awarded to the prevailing party if the court finds that the local or State educational agency or the intermediate educational unit has engaged in conduct which unduly and unreasonably protracted the final resolution of the matter in controversy; or (2) reduce or deny an award if it finds that the prevailing party engaged in such conduct.

Prohibits such awards from being paid with funds provided to the State under such Act.

Provides that such amendments shall apply to actions and proceedings brought on or after July 4, 1984, and actions and proceedings brought prior to such date which were pending on such date.

Provides that nothing in the Education of the Handicapped Act shall be construed to restrict or limit the rights, procedures, and remedies under the Constitution, title V of the Rehabilitation Act of 1973, or other Federal statutes prohibiting discrimination.

Provides that specified provisions under the Rehabilitation Act of 1973 relating to nondiscrimination toward the handicapped under Federal grants and programs shall be carried out in accordance with regulations in effect on July 4, 1984.

Amends the Education of the Handicapped Act to provide for: (1) public access to hearing decisions; and (2) an informal complaint resolution procedure. Provides that any decision regarding participation in an informal complaint resolution meeting with the State or local educational agency or intermediate educational unit shall not affect the availability or provision of any rights of the parents or guardian of the handicapped child under procedural safeguard provisions of such Act.