I don't think that's true. When I was a deputy in CO, after one of the large fires in the early 90s I rode with some COANG guys patrolling evacuated subdivisions in the mountains to discourage looting. They didn't have M16s, but they carried loaded M9s.
Agree, my nephew is in Mo NG and went to St Louis to help riots 4 years ago. He had real guns and bullets,along with non-lethal.