The Air Force's agile combat employment concept would prepare units to operate from dispersed, austere bases in a war against a major adversary like China.
Twenty-three states have aligned with the Trump administration's stance that he has authority to bring in the Guard, while 22 back the district's position.
Hegseth, who recently oversaw the stripping of a base name honoring a Harlem Hellfighter, presented the award to descendants of the Harlem Hellfighters.
