Economic Diversification and Defense Adjustment Act of 1989

Economic Diversification and Defense Adjustment Act of 1989 - Title I: Economic Diversification and Defense Adjustment Council - Establishes in the Executive Office of the President the Economic Diversification and Defense Adjustment Council (the Council). Directs the Council to establish an Office of Economic Diversification and Defense Adjustment within the Executive Office of the President to provide necessary staff support for the Council.

Directs the Council to: (1) disseminate information in specified notifications by the Secretary of Defense; (2) work under the President's direction in implementing programs under title II of this Act; (3) develop and coordinate specified information pertaining to economic diversification and defense adjustment; (4) monitor job services information banks as a resource for dislocated workers in defense-related industries; (5) determine eligibility criteria for specified assistance and rule on eligibility appeals; (6) prepare and distribute an Economic Diversification and Defense Adjustment Guidelines Handbook; (7) make available to committees under title III of this Act information on economic development program funds which may be used for diversification and conversion planning; and (8) report annually to the Congress on any Federal economic development program which does not make available an adequate portion of its funds for such planning.

Directs the Secretary of Defense (the Secretary), acting through the Council, to notify State and local governments and regional organizations which may be eligible for grants under this Act of: (1) a proposed realignment or closure of a military installation (on the same day on which such a determination is made); (2) the cancellation or termination of a defense contract or the failure to proceed with an approved major weapon system program; and (3) other significant pending or proposed changes in defense spending that will affect employment in the defense industry. Prohibits the Secretary from carrying out any proposed change unless such notification requirements are met. Directs the Secretary to furnish the Council annually with projected future defense spending levels and contract progress reports.

Makes such notification requirements inapplicable to the termination or cancellation of a defense contract due to the enactment of any Federal law or a breach of such contract by the contractor or subcontractor.

Title II: Community Economic Diversification and Defense Adjustment and Other Program - Directs the Council to establish a program of making general grants to: (1) eligible local or regional governments to plan or implement job retraining and economic diversification programs, or plan for alternative use of defense facilities; or (2) labor unions representing employees of businesses located within or near such governments.

Directs the Council to establish a special program to pay premiums or other fees to maintain health insurance for up to one year for individuals whose unemployment resulted directly from cancellation or reduction of a major defense contract, or the closing or realignment of a military installation.

Sets forth limitations on such grants.

Title III: Diversification-Alternative Use Committees - Requires each community receiving a general grant under title II to establish a diversification-alternative use committee. Requires such committees, among other things, to develop diversification plans and alternative use plans.

Title IV: Authorization of Appropriations - Authorizes appropriations for FY 1990 and thereafter.