It's going to be a costly decision, too:
2007 Greay Beard study (unpublished) estimated that ARNG formations on the aggregate, cost approximately 31% of Active forces. (EE, MM, SS PEG dollars - Excluding OCO/T10 OPTEMPO, in which case they become equivalent)
This is a dumb decision, and likely to have some backlash in the Legislature. Recall in 2004 "Hill Billy Armor", in which it became clear that the AC was not equipping the ARNG properly, leading to Guard units deploying with old or insufficient quantities of equipment. This led to a push from 2005 through 2008 to equip the Guard to S1 levels of readiness, and in 2008 exceeded $13B in new procurement for the Guard.
It's going to happen again...NGAUS is going to push this issue in the Congress, and the Army is going to be forced to buy new stuff for the Guard.
IMHO, this could all be avoided if the ARNG was given its own procurement appropriation (not NGREA), for which it POMs and executes according to its own equipping priorities. Procurement is the only appropriation that the Guard does not have, and since the ARNG's requirements are commensurate with those of the Active Army, buying power would be preserved if such an appropriation was made available for COMPO 2 to execute on its own behalf.