To amend title 32, United States Code, to authorize Federal support of State defense forces.

Amends Federal provisions relating to the National Guard to add a new chapter concerning the formation of State defense forces. Defines a "State defense force" as a military force organized by a State to become operational when the State National Guard forces are federalized or otherwise unavailable or inadequate for the defense needs of such State.

Provides that, as general policy, State defense forces are in the national interest as a reserve force of the States, for specified reasons. Provides that membership in a State defense force shall be determined by the individual States, but that a member of the U.S. armed forces shall not also be a member of a State defense force. Provides further that membership in a State defense force does not exempt a person from any required duty under the Military Selective Service Act, nor does such membership limit a person from enlistment or appointment in an armed force.

Authorizes the Secretary of a military department to issue or loan military equipment, supplies, or uniforms to a State for use in connection with its State defense force. Directs the Secretary of Defense to prescribe policies and procedures to be followed in the issuing and loaning of such equipment.

Authorizes the sale (by the Secretary of the military department concerned) and the wearing of military uniforms by members of a State defense force, as long as such uniforms have been approved by such Secretary.

Authorizes the Secretary of a military department to provide a member of a State defense force and States with defense forces training and training assistance for such forces. Authorizes such training, in the alternative, to be provided by an executive department and an independent agency of the Federal Government in the interest of national security and when not detrimental to the primary operational requirements of the department or agency concerned. Provides that the Chief of the National Guard Bureau shall serve as the means of communication between a State and the Federal Government on matters involving the State defense forces.

Provides that a member of a State defense force is not to be considered a member of the U.S. armed forces for any reason, including eligibility for federally-sponsored health care or disability benefits.

Authorizes the Secretary of a military department to conduct such background investigations for potential members of State defense forces as considered necessary and appropriate by such Secretary for the granting of appropriate security clearances for such personnel. Authorizes a State sponsoring a State defense force to conduct necessary and appropriate background investigations as a condition for allowing access to classified information by a member of the defense force.