Positive Aging Act of 2005 - Amends the Older Americans Act of 1965 to direct the Assistant Secretary for Aging to establish the Office of Older Adult Mental Health Services within the Administration on Aging to develop and implement initiatives to address the mental health needs of older individuals. Directs the Assistant Secretary to make grants to: (1) states for systems to deliver mental health screening and treatment services to older individuals lacking access to such services and for programs to increase public awareness of the benefits of preventing and treating mental disorders in older individuals; and (2) public and nonprofit private entities for demonstration projects providing mental health screening and treatment services to older individuals residing in rural areas or in naturally occurring retirement communities in urban areas.
Amends the Public Health Service Act to direct the Secretary of Health and Human Services, acting through the Director of the Center for Mental Health Services, to make grants to public and nonprofit private entities for: (1) demonstration projects integrating mental health services for older patients into primary care settings; and (2) multidisciplinary geriatric mental health outreach teams in community settings where older adults reside or receive social services. Requires the Director to designate a Deputy Director for Older Adult Mental Health Services. Requires membership of the advisory council for the Center for Mental Health Services to include representatives of older Americans, their families, and geriatric mental health specialists. Includes among projects of national significance the targeting of substance abuse by older individuals. Includes services for older individuals under community mental health services block grant state plan criteria.