	Importance to Congress

The Administration's proposal to reduce the size of the Army as well as restructure units and headquarters has national security implications that Congress will need to consider as part of its oversight and authorizations and appropriations role. January 26, 2012, Administration Major Budget Decision Briefing2

On January 26, 2012, senior DOD leaders unveiled a new defense strategy, based on a review of the defense strategy at the time and budgetary constraints. This new strategy envisioned
a smaller, leaner military that is agile, flexible, rapidly deployable, and technologically advanced; rebalancing global posture and presence, emphasizing where potential problems are likely to arise, such as the Asia-Pacific region and the Middle East; maintaining presence elsewhere in the world (Europe, Africa, and Latin America), using innovative partnerships, strengthening key alliances, and developing new partnerships; being able to quickly confront and defeat aggression from any adversary anytime, anyplace; and protecting and prioritizing key investments in technology and new capabilities as well as the capacity to grow, adapt, mobilize, and surge when needed. DOD announced the Army would reduce the size of the Active Army starting in 2012 from a post-9/11 peak in 2010 of about 570,000 soldiers to 490,000 soldiers by the end of 2017. Press reports at the time suggested the Army might cut more than eight BCTs Army-wide. Units to Be Realigned and Restructured15

In terms of realigning and restructuring the Active Army, DOD and the Army announced in January 2012 that
active forces would no longer be sized to conduct large and protracted stability operations; Army force structure would be sustained in the Pacific, and a persistent presence would be maintained in the Middle East; Army forces will rotate through Europe and other regions on a more frequent basis; a U.S.-based heavy brigade would be allocated to the NATO Response Force; a brigade combat team (BCT) would be aligned with each geographic combatant command to provide cultural and language training to support engagement operations; and BCTs and enabling units would be examined for optimum design, which could lead to further BCT reductions if the Army decides to increase the capability of BCTs. As part of this announcement, the Army also noted that it would reduce and reorganize numerous non-BCT units—often referred to as enablers—as part of the drawdown. Under the reorganization, each armored and infantry BCT will receive a third maneuver battalion. The BCTs will receive additional engineer and fires capabilities. These personnel cuts are not just limited to soldiers but also to Army civilians and contractors and would occur over the course of five years. Active Army Endstrength Reduction to 420,000 Soldiers

In January 2014, it was reported the Administration's FY2015 Budget Guidance will direct the Army to reduce its active duty force to 420,000 soldiers, the Army National Guard from 354,000 to 315,000 and the Army Reserve from 205,000 to 185,000 by FY2019. To achieve this, the Army must accelerate the pace and increase the scale of its post-war drawdown. Voluntary separations were emphasized, and some of the tools had robust financial incentives. Potential Issues for Congress

		What Is the Appropriate Size of the Active Component Force? On February 24, 2014, Secretary of Defense Hagel stated that he would recommend the following to the President:
DOD will further reduce active-duty Army end-strength to a range of 440-450,000 soldiers; "If sequestration-level cuts are re-imposed in 2016, the active-duty Army would have to draw down to an end strength of 420,000 soldiers;" and "The Army National Guard and Reserves will also draw down in order to maintain a balanced force. Active Component/Reserve Component Force Mix

Army leadership is currently on record stating that a minimum of 52 BCTs (28 active and 24 Army National Guard) under the 450,000 active duty plan is the "smallest acceptable force to implement the defense strategy." Voluntary Early Release/Retirement Program (VEERP)
This voluntary program targeted the most junior and the most senior ends of the officer spectrum, with the incentive being a reduction in service obligation.
On January 26, 2012, senior DOD leadership unveiled a new defense strategy based on a review of potential future security challenges, current defense strategy, and budgetary constraints. This new strategy envisions a smaller, leaner Army that is agile, flexible, rapidly deployable, and technologically advanced. This strategy will rebalance the Army's global posture and presence, emphasizing where potential problems are likely to arise, such as the Asia-Pacific region and the Middle East.
As part of the Administration's original proposal, two armored brigade combat teams (ABCTs) in Europe were to be eliminated out of a total of eight BCTs that would be cut from Active Army force structure. The Army had originally stated that it might cut more than eight BCTs from the Army's current 44 Active BCTs. Army endstrength would go from 570,000 in 2010 to 490,000 by the end of 2017. As part of this reduction, the Army would no longer be sized to conduct large-scale, protracted stability operations but would continue to be a full-spectrum force capable of addressing a wide range of national security challenges. The Army National Guard and Army Reserves were not targeted for significant cuts.
On June 25, 2013, the Army announced it would cut 12 BCTs from the Active Army as well as a number of unspecified support and headquarters units. As part of this initiative, infantry and armored BCTs would receive a third maneuver battalion plus additional engineering and fires capabilities. In addition, National Guard BCTs would also be restructured in a similar fashion. Due to the impact of sequestration, the Army also decided to accelerate the Active Army drawdown to 490,000 soldiers by two years—these cuts would now need to be completed by the end of 2015. In an effort to reduce costs, the Army also announced that it would examine cutting all two-star and higher headquarters staffs by 25%—a figure that includes soldiers, Army civilians, and contractors.
In January 2014, it was reported that the Administration's FY2015 Budget Guidance will direct the Army to reduce its Active Component end strength to 420,000 soldiers—a level that Army leadership has stated will not permit it to implement the nation's defense strategy. The Army is also proposing reducing and restructuring its Aviation brigades, and there are concerns about the Army National Guard losing all of its AH-64 Apache attack helicopters under this proposal.
On February 24, 2014, Secretary of Defense Hagel announced that he would recommend reducing Army active endstrength to between 450,000 to 440,000 soldiers, and if sequestration-level cuts were imposed in 2016, the Army would be required to drawdown to a 420,000 soldier active force.
The Army drawdown will likely be achieved in large degree by controlling accessions (i.e., the number of people allowed to join the Army). If limiting accessions is not enough to achieve the desired endstrength targets, the Army can employ a variety of involuntary and voluntary drawdown tools authorized by Congress, such as Selective Early Retirement Boards (SERBs) and Reduction-in-Force (RIF). Voluntary tools that the Army might use include the Voluntary Retirement Incentive, the Voluntary Separation Incentive, Special Separation Bonuses, Temporary Early Retirement Authority, the Voluntary Early Release/Retirement Program, and Early Outs.
Potential issues for Congress include what is the appropriate size of the active component force and the balance between active and reserve components. This report will be updated.