To ensure that defense conversion, reinvestment, and transition assistance programs of the Department of Defense are directed primarily toward those States (and areas within those States) that have experienced the greatest number of job losses as a result of reductions in defense spending or the closure or realignment of military installations.

Directs the Secretary of Labor to: (1) determine annually the number of employment positions lost in each State since January 1, 1985, as a result of reductions in defense expenditures, the termination of defense contracts (including new weapon systems), or the closure or realignment of military installations; (2) rank each State based on the number of job losses due to such factors; (3) report annually to the Congress and the Secretary of Defense on such job loss determinations; and (4) target to States with the highest percentage of such total job losses any assistance available under defense conversion, reinvestment, and transition assistance programs for a fiscal year.