18 USC 922(o)(1) Except as provided in paragraph (2), it shall be unlawful for any person to transfer or possess a machinegun.
(2) This subsection does not apply with respect to -
(A) a transfer to or by, or possession by or under the authority of, the United States or any department or agency thereof or a State, or a department, agency, or political subdivision thereof; or
(B) any lawful transfer or lawful possession of a machinegun that was lawfully possessed before the date this subsection takes effect.
Yeah, technically MGs are still legal in the majority of states. That technicality is a perversion: the law is designed to satisfy the "right" yet severely discourage the exercise thereof. It's sorta like a poll tax & test: just answer these "simple" questions and pay this "small" fee and we'll let you vote...gosh, amazing how many people suddenly don't want to exercise their right to vote, I wonder why...