Defense Economic Adjustment Act

Defense Economic Adjustment Act - Title I: Defense Economic Adjustment Council - Establishes in the Executive Office of the President the Defense Economic Adjustment Council to be composed of Cabinet members and Directors of government agencies.

Specifies the duties of the Council, including the duty to assist communities, industries, and employees which may be substantially and seriously affected to make adjustment to closure and reduction of bases or cancellation or reduction of defense contracts.

Title II: Community Economic Adjustment Planning - Authorizes the Council to allocate economic development funds appropriated to Federal agencies to communities which would be substantially affected by reduction or elimination of Government military facilities or curtailment or conclusion of military contracts.

Title III: Industrial Economic Adjustment - Requires defense contractors to undertake planning and preparation for the employment of the personnel and utilization of the facilities employed on a contract after its completion.

Authorizes the Chairman of the Council to provide assistance to defense and nonprofit contractors on conversion to nondefense industry, and appropriates $50,000,000 for fiscal year 1975 for such purpose.

Specifies the criteria for assigning priorities among economic projects applying for support under this Act.

Title IV: Economic Adjustment Fund - Requires payment to the Council of one-half of one percent of the amount of any defense contract for funding of the Workers Economic Adjustment Reserve Trust Fund to be established in the Treasury.

Provides for the return of unexpended moneys of a contractor in the fund if all of his obligations under this Act have been discharged and he has not contracted with the Federal Government to furnish defense materials within 24 months.

Title V: Economic Adjustment Assistance For Workers - Provides for the payment of economic adjustment benefits for workers or nonprofit contractors who have been displaced from private defense facilities for 2 years following such displacement.

Provides that such assistance shall include up to 80 percent of weekly wages, maintenance of insurance coverages, vested pension credit, and retraining.

Conditions the eligibility of workers for such benefits upon maintenance of registration with the Secretary of Labor and an agreement to accept employment determined by the Secretary of Labor to be suitable.