To facilitate the employment of separated members of the Armed Forces by law enforcement agencies.

Directs the Secretary of Defense to: (1) establish a program to facilitate the employment of eligible members of the armed forces by State and local law enforcement agencies (LEAs) upon their separation from active duty; and (2) periodically request information from States and local governments to identify areas in which there is a shortage of law enforcement officers.

Sets forth provisions regarding: (1) eligibility of members; and (2) selection of participants.

Requires the Secretary to enter into agreements with State and local LEAs in shortage areas to arrange for placements. Specifies that under the agreement: (1) the LEA shall agree to employ a participant selected for the program on a full-time basis for at least a two-year period; and (2) the Secretary shall agree to pay to such LEA an amount equal to the basic salary to be paid to the participant during the required two-year employment period, and the cost of health and life insurance benefits provided to the participant during that period that are ordinarily provided to officers of the LEA. Permits such payments in installments. Directs the LEA to reimburse the Secretary on a prorated basis if a participant leaves its employment before the end of the two years.

Prohibits the Secretary from making a grant under this Act to an LEA at terminates an employee in order to fill the vacancy with a participant.

Directs the Secretary to give priority to those LEAs that offer to employ a participant as a full-time employee for longer than the required two-year period.

Specifies that the two-year period of service shall be considered in the computation of years of service of a member of the armed forces under statutory provisions regarding eligibility for, and computation of, retired pay.