A bill to improve existing procedures and programs for providing Federal assistance for economic stabilization and local community development in areas affected by defense base closures and the termination of defense contracts.

Authorizes the Secretary of Commerce, for the purpose of easing the economic effects of the termination of defense contracts, to guarantee loans to defense contractors or subcontractors which have been designated by the President's Inter-Agency Economic Adjustment Committee as being eligible for such loan guarantees. Stipulates that such loan guarantees shall be for the purpose of retooling, adjusting production lines, or otherwise altering a business as a result of the termination of a defense contract.

Authorizes the Secretary to make grants for economic adjustment planning for areas about to experience a rise in unemployment or other economic adjustment problems caused by a military base closure or realignment.

Requires the Secretary of Defense or the Secretary of the military department concerned to notify the Committee of any proposed closure or realignment of a military base at least one year before such action is to be taken.

Requires the head of any agency to notify the Committee at least one year in advance of the termination of a defense contract of more than $1,000,000.

Transfers the defense economic adjustment functions of the Secretary of Defense to the President to be carried out by the Committee. Transfers the personnel and unexpended balances of the Office of Economic Adjustment in the Department to the Committee.

Amends the Federal Property and Administrative Services Act of 1949 to authorize the Administrator of General Services to sell or lease real property which has become surplus as a result of a base closure or realignment to any State or subdivision thereof.

Requires that such property be utilized for an economic development program.