Members of the Indiana National Guard are facing one day of furloughs per week between now and the end of September.
Col. Wayne Black is being promoted to become the Indiana National Guard's first African-American brigadier general.
Officials say the state should be able to absorb the cuts because it is in good fiscal condition.
The Indiana National Guard may have to lay off or put some employees on furlough if national budget cuts take effect March 1.
The National Guard unit is made up of flight medics.
The 81st troop will move from Indianapolis to Terre Haute.
Indiana native Aarronn Fields was killed in Afghanistan on May 21.
Soldiers have been returning home to Indiana because of orders that all troops should leave Iraq by the end of the year.
Under current law, families must apply for the assistance within one year of the service member returning home.
Vice President Joe Biden was in Indianapolis Monday morning to announce the withdrawal of all American combat troops from Iraq .