It should be handled at the local level unless they make a request for help to the state. Cities and county police, and their SWAT teams already, (and have for many years) work and practice together and in many cases they invite smaller community law enforcement to join in. This makes their effectiveness much stronger because they understand how the departments work and respond to these situations thus permitting them to inter-sync with each other. Leave the military to deal with the larger threats. At this time the Feds should stay out of it except for the passing of intelligence info along the lines to those departments who need it. The states don't need the Feds to babysit them.