A bill to repeal section 2392 of title 10, United States Code, relating to the prohibition on the use of Department of Defense funds to relieve economic dislocations, and for other purposes.

Repeals the prohibition against using Department of Defense procurement funds to pay a price differential for goods and services to relieve economic dislocation.

Directs the Secretary of Defense, beginning with FY 1985, to pay a price differential on nonstrategic contracts to relieve economic dislocations and provide employment in labor surplus areas. Limits the use of such differential as to percent and total value of contracts.

Directs the President to report annually to Congress on the costs and benefits of such program.