This is kinda interesting. Bush signed in a new law that's been percolating for a while allowing the armed forces to be used in more domestic uses. While many people are concerned about the ease of imposing martial law, others are seeing as a response to the slow response in Katrina, etc.
Here's one site with the details.

This modifies the The Insurrection Act which previously limited el jefe's power.

I dunno. Personally I'm not a fan. The military acting as a police force? They're soldiers, not cops. How well is our 'police force' working out in Iraq? I'm not dissing the people who are there- they're well trained soldiers. But the biggest weakness is just they are well trained soldiers. Not cops.