Released from active Federal service on 8 October 1954 and reverted to state control as Headquarters and Headquarters Company, 278th Infantry; concurrently, Federal recognition withdrawn from Headquarters and Headquarters Company, 278th Infantry (NGUS) .
Consolidated on 1 March 1959 with the Medical Detachment, 278th Armored Infantry Battalion (organized and Federally recognized on 2 August 1955 at Athens, TN) and consolidated unit designated as Headquarters and Headquarters Company, 2d Armored Rifle Battalion, 117th Infantry, an element of the 30th Armored Division .