Displaced Workers Relief Act of 2001

Displaced Workers Relief Act of 2001 - Authorizes certain groups of workers who have become totally or partially separated (or threatened with total or partial separation) from employment with the airline industry as a result of reductions in service by an air carrier or closure of an airport due to a terrorist action or security measures to petition the Secretary of Labor for a certification of eligibility to apply for adjustment assistance (similar to trade adjustment assistance under the Trade Act of 1974). Provides certain benefits (employment services, job training, and readjustment allowances) to eligible workers meeting certain eligibility requirements.

Provides eligible workers who do not meet certain requirements for State unemployment compensation with a limited readjustment allowance under this Act.

Provides for payment of premiums for COBRA health care continuation coverage of eligible workers. Authorizes a State to elect to provide medical assistance under its Medicaid program under title XIX of the Social Security Act for eligible workers who are not eligible for COBRA health care continuation coverage, and who are uninsured.