Economic Conversion Act of 1987

Economic Conversion Act - Title I: Prenotification of Base Closures and Defense-Related Contract Cancellations - Directs the Secretary of Defense, through the Economic Adjustment Committee, to notify State and local governments and regional organizations within a specified period of time of a proposed realignment or closure of a military installation or of the cancellation or termination of a defense contract or failure to proceed with an approved major weapon system program.

Title II: Economic Conversion Pilot Program - Authorizes the Secretary to make grants for job retraining programs and planning for alternative production required by cancellation of defense contracts during FY 1988 through 1992. Permits one grant for each defense contract cancellation or reduction.

Requires the administration of such grants at the local level by a capable unit of general local government or, through default, by the collective bargaining agents of affected employees.

Directs the Secretary to make weekly economic adjustment assistance payments to such employees affected by a cancellation or reduction of a contract valued at $10,000,000 or more during FY 1988 through 1992. Sets forth a formula for determining the amount of such assistance, making allowances for unemployment compensation or public assistance received and health insurance coverage needed.

Sets forth assistance application procedures and notification requirements.

Makes available for such grants the amount of previously appropriated funds which the United States will save as a result of the cancellation or reduction of a defense contract.