Economic Conversion Act of 1988

Economic Conversion Act of 1988 - Title I: Economic Stabilization and Revitalization Pilot Program - Amends the Defense Production Act of 1950 to authorize the President to make grants for job retraining programs and planning for alternative production required by the cancellation of major defense contracts (or reductions of $10,000,000 or more in the value of such contracts) during FY 1989 through 1993. Permits one grant for each defense contract cancellation or reduction.

Requires the administration of such grants at the local level by a capable unit of general local government or, through default, by the collective bargaining agents of affected employees.

Directs the President to make weekly economic adjustment assistance payments to employees affected by such a cancellation or reduction of a contract during FY 1989 through 1993. Sets forth a formula for determining the amount of such assistance, making allowances for unemployment compensation or public assistance received and health insurance coverage needed.

Sets forth assistance application procedures and notification requirements.

Makes available for such grants and assistance payments the amount of previously-appropriated funds which the United States will save as a result of the cancellation or reduction of a defense contract.

Title II: Prenotification of Base Closures and Defense-Related Contract Cancellations - Directs the Secretary of Defense, acting through the Economic Adjustment Committee, to notify State and local governments and regional organizations within a specified period of time of the proposed realignment or closure of a military installation, the cancellation or termination of a defense contract, or the failure to proceed with an approved major weapon system program.