Community Economic Adjustment Funding Act of 1991

Community Economic Adjustment Funding Act of 1991 - Requires payments to counties by defense contractors that change the place of performance of defense contracts away from such counties. Requires a defense contractor to make such a payment equal to ten percent of the value of all Department of Defense (DOD) contracts held by it and performed at a plant or facility on the day before the contractor makes any change in the place of contract performance that results in the closing of, or severe curtailment of operations at, such plant or facility. Exempts the contractor from such a payment if the Secretary of Labor determines that the change is the direct result of the cancellation or termination of such contractor or the failure of the DOD to proceed with a previously approved major defense acquisition program.

Directs the Secretary of Labor to make community economic adjustment grants to counties adversely affected by terminations or layoffs of employees at military bases or facities of defense contractors as a result of reductions in DOD spending, base closures or realignments, cancellation or termination of a DOD contract, or the failure to proceed with a previously approved major defense acquisition program. Sets forth requirements for such grant amounts, uses, and applications, and deadlines for consideration of such applications. Authorizes appropriations for such grants for a fiscal year in amounts equal to: (1) 20 percent of the value in the immediately preceding fiscal year of the payroll of employees terminated or laid off in the United States as a result of the described actions; and (2) ten percent of such value in the second preceding fiscal year.