The Army faces many challenges arising from the 11 September 2001 terrorist attacks, the Global War on Terrorism and the operations in Iraq and Afghanistan. At the same time, the Army is transforming and modernizing while maintaining its high operational tempo. ese irregular, catastrophic and disruptive challenges are likely to continue, along with more traditional military challenges. To maintain the highest quality force, the Army is pursuing initiatives to produce and sustain a full spectrum of capabilities to defend the homeland, sustain the long war, conduct irregular operations and wage conventional campaigns. To meet the needs of the nation and adapt to the challenges our Soldiers will face, we must continue to improve these capabilities.The Army is keeping a firm focus on the future. It is pursuing the Future Combat Systems, developing new weapons, communication, surveillance and security technologies, and recapitalizing facilities for Soldiers and their families. Fiscal Year 2007 President’s Budget submitted to Congress includes funds for pursuing the Army’s four overarching and interrelated strategies:Provide relevant and ready land power for the 21st century security environment.Train and equip Soldiers to serve as warriors and grow adaptive leaders.Sustain an all-volunteer force composed of highly competent Soldiers who are provided an equally high quality of life.Provide infrastructure and support to enable the force to fulfi ll its strategic roles and missions.The Fiscal Year 2007 Army Budget—An Analysis details the resources required for the Army to accomplish its missions today and tomorrow. It examines the Army’s proposed budget in the context of the federal and Department of Defense budgets and breaks down requests according to funding authority and programs, from Soldiers’ pay to research and development. It explains budget terminology and procedures, including the supplemental funding process that is necessary for the Army to sustain the current level of operations and provide for Soldiers.The Association of the United States Army fully supports the Army—active, Army National Guard, Army Reserve, Army civilians and the families and communities who stand behind them all—as it faces its many challenges. Fiscal Year 2007 Army Budget—An Analysis is just one of many ways we speak out on issues important to the American Soldier, American landpower and the security of the nation and the world.