Thanks for the interesting posts, dragoon500ly.
Some comments:
The military seems very large, with over 100,000 troops in the land force alone.
This is getting towards the size of the Israeli Defense Force (187,000 active,
over 500,000 reserves).
Using Israel as an analog, this implies a total population of about 7-8 million.
Assuming lower levels of defense spending, the population base needs to be commensurately bigger.
I know you stated at the beginning that your version of the KFS follows the Appalachians into New England - quite a bit bigger than Tim McF's 'official' version in 'Bullets and Bluegrass'.
The weakness of an authoritarian society is that one day, the populace will no longer consent to be ruled.
The goal of the Morrow Project is to hasten this process, and there are
ways to do it:
'From Dictatorship to Democracy' by Gene Sharp.
http://http://www.aeinstein.org/organizations98ce.html
There are a number of potential fault lines to exploit with the corrupt apartheid oligarchy you have described.