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Review: Federal Support for Local Law Enforcement Equipment Acquisition December 2014
Particularly in the years since September 11, 2001, Congress and the Executive Branch have steadily increased spending and support for these programs, in light of legitimate concerns about the growing threat of terrorism, shrinking local budgets, and the relative ease with which some criminals are able to obtain high-powered weapons.
Snip...The bulk of the equipment transferred from federal sources to LEAs is fairly routine— office furniture, computers and other technological equipment, personal protective equipment and basic firearms. But federal agencies also transfer, or fund the purchase of, military equipment, including high powered weapons and tactical vehicles.

DEPARTMENT OF HOMELAND SECURITY (DHS)
Since 2003, DHS has made funding available for LEAs chiefly through FEMA’s Homeland Security Grant Program (HSGP), pursuant to the authorities currently provided at 6U.S.C. §§ 603-609. The HSGP is comprised of three, interconnected grant programs; the State Homeland Security Program (SHSP), the Urban Areas Security Initiative (UASI) and Operation Stonegarden (OPSG). SHSP and UASI are designed to build capabilities to prevent, protect against, mitigate, respond to, and recover from terrorist attacks, disasters, and other incidents in support of the National Preparedness Goal. States are required by law to pass-through (i.e., sub-award) at least 80 percent of funding to local or tribal jurisdictions. The UASI program provides funding for high-threat, high-density urban areas. States are required to pass-through at least 80 percent of UASI funds directly to those local jurisdictions situated in urban areas. These funds are then administered by an Urban Area Working Group. States and urban areas allocate grant funds at their own discretion as long as those allocations conform to applicable governing laws, regulations and guidelines. Operation Stonegarden provides funding to enhance cooperation and coordination among local, tribal, territorial, state and federal law enforcement agencies to secure the United States’ borders. OPSG funds are allocated based on a sector-specific DHS border risk methodology. In FY2014, HSGP provided over $1 billion in grant funding to all U.S. States and Territories and to 39 Urban Areas across the country.