 President Truman's reduced 1949 defense budget also required reductions in the number of units in the Air Force, At O'Hare, the 338th Group and its squadrons were inactivated, and most of its personnel transferred to the 437th Troop Carrier Wing.The squadron was redesignated the 563d Fighter-Bomber Squadron and activated at Clovis Air Force Base, New Mexico in November 1953.The squadron was equipped with North American F-86F Sabres, with a capability of carrying nuclear weapons.