United States-Libya Relations Act of 2005 - Amends the Iran and Libya Sanctions Act of 1996 to: (1) eliminate mandatory sanction provisions respecting Libya; (2) eliminate other provisions respecting Libya; and (3) rename the Act as the Iran Sanctions Act of 1996.
Directs the Secretary of State to develop a plan for the establishment of a U.S. Embassy in Libya in order to establish full diplomatic relations with Libya.
Authorizes the Secretary to conduct the following scholarship and exchange programs with Libya: (1) Fulbright Exchange Program; (2) International Visitors Program; and (3) people-to-people cultural, arts, entertainment, sports, and other exchanges.
Authorizes the President, through the United States Agency for International Development (USAID), to provide assistance to the Government of Libya to: (1) combat the spread of HIV/AIDS and other diseases; (2) support the development of civil society, including nongovernmental organizations; (3) promote the development of independent media; and (4) promote the rule of law, good governance, and liberal institutions.
Authorizes the Secretary to include Libya and Libyan nationals in programs under the Middle East Partnership Initiative (MEPI).
Authorizes trade and investment activities for Libya through the Overseas Private Investment Corporation (OPIC), the U.S. Export-Import Bank, and the Trade and Development Agency.
Authorizes the U.S.Trade Representative and the Commissioner of the Bureau of Customs and Border Protection of the Department of Homeland Security to provide technical assistance to Libya in order to facilitate Libya's eligibility for duty-free treatment.
Authorizes the Secretary to establish programs to redirect Libyan weapons of mass destruction expertise.