The move comes as a result of a new State Department report requested by Secretary of State Condoleezza Rice.
According to a BBC,
Rice ordered the review after Blackwater guards killed 17 Iraqi civilians in Baghdad in September 2007.The Blackwater news is in stark contrast to a report posted earlier this week on Tulsa Today, a posting by writer Pat McGuigan that seeks to defend the firm in spite of its checkered record in Iraq.
Five guards have been charged with manslaughter over the shootings.
The incident triggered outrage in Iraq and led to a debate about the role there of private security companies - upon which the US relies heavily.
Read more about the State Department report here.