Improving the Community Services Block Grant Act of 2005

Improving the Community Services Block Grant Act of 2005 - Amends the Community Services Block Grant Act (CSBGA) to reauthorize appropriations and to revise the program.

Requires eligible entities to develop and meet locally determined goals as well as State goals, standards, and performance requirements.

Includes initiatives to improve economic conditions and mobilize new resources in rural areas to eliminate obstacles to the self-sufficiency of families and individuals in rural communities among the activities for which State plans must assure use of CSBGA grant funds.

Requires State plans to include assurances that the State will: (1) take swift action to improve performance, or when appropriate, terminate the funding of low-performing eligible entities that do not meet locally determined goals or State goals, standards and performance requirements; and (2) provide a justification to the Secretary if they continue to fund persistently low-performing eligible entities.

Requires States to: (1) measure performance of local entities with regard to locally determined goals; and (2) provide information on the timeliness of the distribution of block grant funds to eligible entities, and on their availability as timely advance payments for activities approved in local plans.

Requires eligible entities to: (1) develop locally determined goals; and (2) demonstrate to the State that they have met such local goals to continue their eligibility for funding.

Sets forth local grantee accountability and reporting requirements.

Includes water and wastewater facility needs among those to be addressed by rural community development assistance.