The decision follows public criticism of the recent use of such assets -- including armored vehicles, high-tech weaponry and stun grenades -- in Ferguson, Missouri, where police have faced off with protesters ever since the fatal police shooting of Michael Brown.
Acquisition of military surplus equipment by local police departments became possible through the military's Defense Logistics Agency, a law enforcement support program established in 1999.
But, once in the hands of these departments, it's "up to local law enforcement to determine how and when and where and under what circumstances they use excess military equipment," Pentagon spokesman Rear Adm. John Kirby said earlier this week.
Protesters march in Ferguson, Missouri, on Thursday, August 21. The St. Louis suburb has been in turmoil since a white police officer, Darren Wilson, fatally shot an unarmed black teenager, Michael Brown, on August 9. Some protesters and law enforcement officers have clashed in the streets, leading to injuries and arrests.
A crowd gathers in Ferguson on August 21. With the situation appearing to calm, Gov. Jay Nixon ordered the Missouri National Guard to begin withdrawing from the city.
Police escort a Wilson supporter to a police vehicle, away from crowds protesting Brown's death on Wednesday, August 20. Police have said Brown and Wilson struggled over the officer's gun; some witnesses said Brown had his hands in the air when he was shot.
Lightning streaks over protesters on August 20.
Demonstrators protest on August 20.
U.S. Attorney General Eric Holder meets with Capt. Ron Johnson of the Missouri State Highway Patrol at a Ferguson restaurant on August 20. Holder came to Missouri to talk to community leaders and review the federal civil rights investigation into Brown's shooting.
Protesters march through the streets of Ferguson on August 20.
Police point out a demonstrator who has his arms raised before moving in to arrest him Tuesday, August 19.
People watch from inside a restaurant as protesters rally August 19.
Police arrest a demonstrator on August 19.
Police charge into the media work area with weapons drawn as they try to control demonstrators on August 19.
A protester speaks to a police officer on August 19.
People on August 19 stand near a memorial where Brown was shot and killed.
Protesters march on August 19.
Police watch as protesters march August 19.
A demonstrator is arrested on August 19.
Police try to control protesters on Monday, August 18.
Police lead a man away during a protest August 18.
A demonstrator shouts during a protest on West Florissant Avenue, one of Ferguson's main streets, on August 18.
Capt. Ron Johnson of the Missouri State Highway Patrol pulls his men back from aggressive protesters on August 18.
Police arrest a demonstrator August 18 after peaceful protests gave way to angry confrontations with authorities.
Law enforcement officers stand guard during a protest on West Florissant Avenue on August 18.
A woman helps a man affected by tear gas August 18. The situation overnight deteriorated after a handful of protesters threw rocks, bottles and Molotov cocktails at police. Officers responded by firing stun grenades and tear gas canisters.
Officers stand with weapons drawn during a protest on West Florissant Avenue on August 18.
Musician Nelly, center, joins demonstrators in Ferguson on August 18.
Demonstrators receive red roses as they protest August 18.
Demonstrators march on August 18.
The Rev. Jesse Jackson shakes hands with a police officer as he visits Ferguson's demonstration area on August 18.
A protester picks up a tear gas canister on Sunday, August 17.
Police wait to advance after using tear gas to disperse protesters August 17.
Water gets poured into a woman's eyes after a tear gas attack by police on August 17.
A man runs through clouds of tear gas on August 17.
Protesters react as police fire tear gas at them August 17.
Police advance through a cloud of tear gas on August 17. Most of the crowd had dispersed after a curfew went into effect at midnight, St. Louis County authorities said.
People take cover from tear gas inside a McDonald's on August 17.
A large group of police officers advance toward protesters on August 17.
A man fights the effects of tear gas in Ferguson on August 17.
Michael Brown Sr. and Lesley McSpadden, the parents of Michael Brown, attend a rally at Greater Grace Church in Ferguson on August 17.
The Rev. Al Sharpton hugs McSpadden during the rally.
Capt. Ron Johnson of the Missouri State Highway Patrol speaks at the rally. He had been appointed by the governor to take control of security operations.
Demonstrators defy a curfew early on August 17.
Police fire tear gas at demonstrators after curfew on August 17.
A law enforcement officer aims his rifle August 17 after tear gas was fired to disperse a crowd.
People scramble as police fire tear gas on August 17.
Law enforcement officers check a building on August 17.
People attend a protest after the midnight curfew on August 17.
A law enforcement officer watches as tear gas is fired to disperse a crowd on August 17.
Police stand guard before the midnight curfew on Saturday, August 16.
People loot the Ferguson Market and Liquor store on August 16. Several businesses were looted as police held their positions nearby.
Missouri State Highway Patrol officers listen to taunts from demonstrators during a protest on Friday, August 15.
Demonstrators protest with their hands up on August 15. The "hands up" gesture has become a symbol in protests as Brown, according to eyewitnesses, was trying to surrender when he was shot multiple times.
Police confront demonstrators on August 15.
A demonstrator throws a tear gas canister back at police on August 15.
Police confront demonstrators on August 15.
Thousands of demonstrators march down a Ferguson street with members of the St. Louis County Police and the Missouri State Highway Patrol on Thursday, August 14.
Demonstrators hold signs as traffic moves slowly past them on August 14.
State Highway Patrol Capt. Ron Johnson smiles at demonstrators on August 14. Johnson was appointed to lead security as state troopers took over after days of clashes between protesters and local police.
The Rev. Traci Blackmon uses a megaphone to talk to a large group of demonstrators on August 14.
A man picks up a flaming bottle and prepares to throw it as a line of police advance in the distance on Wednesday, August 13.
Police stand in clouds of smoke as they clash with protesters on August 13.
An Al-Jazeera television crew runs for cover as police fire tear gas at its position on August 13. Video and images on social media showed police later breaking down the journalists' gear.
A protester runs from tear gas exploding around him on August 13.
Police stand guard among demonstrators on August 13.
Ferguson Police Chief Thomas Jackson fields questions during a news conference on August 13.
A small group of protesters block traffic in the street before police arrived on August 13.
A protester throws a tear gas canister back toward police on August 13.
Police detain a man on Tuesday, August 12.
People congregate at the Greater St. Marks Family Church in St. Louis along with the family of Michael Brown and the Rev. Al Sharpton on August 12.
Michael Brown Sr. stands alongside Sharpton, right, during a news conference in St. Louis on August 12.
Demonstrators protest August 12 in Ferguson.
A makeshift memorial sits in the middle of the street where Michael Brown was shot and killed.
A woman tries to calm an emotional protester during a demonstration outside the headquarters of the Ferguson Police Department on August 11.
Phaedra Parks, left, comforts Desuirea Harris, the grandmother of Michael Brown, during a news conference in Jennings, Missouri, on August 11.
Police officers arrest a man who refused to leave when police cleared streets in Ferguson on August 11.
A burned-out QuikTrip gas station smolders on August 11 after protesters looted and burned the Ferguson building the night before.
Police officers and protesters confront each other on Saturday, August 9, the same day Michael Brown was shot and killed.
Emotions run high in Ferguson, Missouri
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Photos: Emotions run high in Ferguson
Ferguson Police Chief Thomas Jackson has defended his force's actions, saying officers have needed protection and noting that some protesters have thrown fire bombs.
Other officials, including Gov. Jay Nixon, have expressed concern about the ramped-up equipment and patrols following the first protests.
On Monday, Obama signaled police access to military power may be due a look.
"There is a big difference between our military and our local law enforcement, and we don't want those lines blurred," he said. "That would be contrary to our traditions."
Concerns about perception have been echoed by Attorney General Eric Holder.
"At a time when we must seek to rebuild trust between law enforcement and the local community, I am deeply concerned that the deployment of military equipment and vehicles sends a conflicting message," he said.
The review will explore whether such programs and funding are appropriate, whether state and local enforcement agencies have the necessary training and guidance after getting such equipment, and whether the federal government is sufficiently auditing the use of equipment obtained through federal programs and funding.
White House staff -- including members of the Domestic Policy Council, the National Security Council and the Office of Management and Budget -- will lead the review in coordination with Congress, according to the official. LINK