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 military reserve force ready to supplement National Guard forces and State and local government agencies for the performance of specified functions. 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, unless specifically authorized to do so. 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. Authorizes the Secretary of a military department to require reimbursement from a State for the cost of providing training or training assistance to the State defense force of such State. Declares that reimbursement normally should be required in the case of training provided a member of a State defense force for a period exceeding 14 days.

Directs that the chief executive officer of a State sponsoring a State defense force is the responsible official for that force. 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. Encourages a State sponsoring a State defense force to make available to officials of the State defense force all appropriate criminal history information, and to maintain a record of such information pertaining to a member in order that security clearances may be expedited in time of mobilization or national emergency.