Parental Empowerment Act of 2005 - Prohibits any state from receiving federal education funds unless the state has policies and procedures that require: (1) each local educational agency to maintain a parent review and empowerment council to provide input and recommendations regarding purchase or acquisition of library and classroom-based reference, instructional, and other print materials for use in elementary schools; or (2) the state educational agency to maintain such a council, if the state purchases most of such materials.