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Last night a friend argued that if a squad of grey knights splits into combat squads only one of them can use a psychic power. It is my understanding that combat squadding makes for 2 seperate units and Brotherhood of Psykers allows each seperate unit to use their listed powers, the one combat squad just has to deal with a lower leadership since they don't have the Justicar, is this correct?

Yes, it is correct.

That person is entirely incorrect, as they dont understand what a "unit" is.