National means "state" or "federal"?

The Armchair Generalist has a good post on the building issue of who 'owns' the National guard. With deeper and broader dependency on NG troops for homeland defense and similar deep and broad dependency with regular forces overseas, who is paying (economically & socially) for these troops? Definitely an issue that is not discussed enough.

Question: the National Guard is the citizens' militia, right? Others might argue the Michigan Militia or others are the true citizens' militia, and they may be more 'right' today with the functional federalization of the NG. However, as these paramilitary groups border on or go beyond the illegal, firms like Cochise, Blackwater, ArmorGroup, and others form the real citizens' militia as their requirements include lower barriers for participation (we're not talking just shooters here). These other roles, which A Bloody Business chose to focus on, provide the real Lockean choice to the citizenry. Isn't this part of re-democratizing the role of the warrior?