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Army sees smaller IT budget growth in FY2025

By Grier Eagan, Senior Market Intelligence Analyst

We have looked at FY2025 IT budget plans for the U.S. Navy. Let’s look at the FY2025 Army budget.

The Army’s FY2025 budget has seen a nominal increase for development, modernization and enhancement budgeting — to $2.09 billion, an increase from $2.011 billion in FY2024. The focus is on improving security of electronic communications, data sharing and utilization capabilities through artificial intelligence (AI) tools and creating a virtual training environment.

Here are a few key investments and categories of programs being undertaken by the Army for FY2025.* 

Automation and tools

Multi-Domain Intelligence: With a budget of $163 million, the Army Intelligence and Security Enterprise (AISE) is an overarching modernization framework that supports the modernization of geospatial intelligence capabilities, the Army Intelligence Data Platform (AIDP) and the tactical intelligence node.

Automated Data Processing Equipment: Budgeted at $78.6 million, this area of procurement supports the Army's sustaining base automation systems, using automation technology to consolidate, streamline and modernize its management information systems.

CI Automation Architecture: With a budget allocation of $15.5 million, this initiative supports implementation of case management, threat management information systems and information processing systems. Funding is also aimed at updating critical information technology systems, such as the Joint Worldwide Intelligence Communications System (JWICS).

Cryptography and security

COMSEC Cryptographic Systems: With a budget of $66.4 million, this funding supports the procurement and fielding of modern Inline Network Encryption (INE) and Secure Voice (SV) devices, for secure communication through radios, satellite terminals and other means.

Next Generation Load Device: Budgeted at $59.3 million, this allocation supports the procurement of the Next Generation Load Device - Medium (NGLD-M), replacing the legacy Simple Key Loader (SKL). NGLD-M adds cryptographic re-programmability and is upgradable to the NSA's Cryptographic Modernization 2 (CM2) algorithms.

Unified Network Operations: The Army has budgeted $37.6 million for a series of integrated software-based solutions, to replace and consolidate existing Network Operations (NetOps) tools. This purchase would provide fully integrated Network and Enterprise Management Systems (NM/EM) and Identity, Credential, and Access Management (ICAM) to help achieve a zero-trust environment.

Army Key Management Infrastructure: Budgeted at $31.5 million, this initiative is intended to support Key Management Infrastructure (KMI), Management Client Node (MCN), Simple Key Loader (SKL), Next Generation Load Device - Small (NGLD-S), and Automated Communication Engineering Software (ACES). These advancements will let the Army manage, control, plan, and distribute electronic keys necessary to communicate and distribute data on Army networks.

Virtual training environment

Reconfigurable Virtual Collective Trainers (RVCT): The Army is directing $96 million to procure devices in FY2025 for delivery in FY2026. Interim contract support to field locations is also part of this procurement.

Synthetic Training Environment: With a budget of $73.8 million, this funding supports procurement of updates to the live training infrastructure. It also addresses contractor logistics support for the integration and fielding of Synthetic Training Environment Live (STEL) capabilities to combat training centers.

Training Simulation Software/Training Management Tools: The Army has budgeted $24.4 million to procure software licenses at five locations. Base funding also will provide post deployment software support to conduct software updates, patches, and modifications, and to provide help desk support to fielded systems.

Research and development

Spectrum Situational Awareness System: The Army is budgeting $9.33 million to develop a dedicated electro-magnetic spectrum (EMS) situational awareness system for real-time EMS situational awareness. This system would support emissions control decisions and warn operations centers of unauthorized or intentional sources of interference on the battlefield.

Cyberspace Operations and Force Support: The Army is directing $2.27 million to support pilot and prototype capabilities. The funds will initiate up to three different prototypes per year to address Army Cyber Command capabilities.

These budget allocations are only a small cross-section of the Army’s overall IT spending for FY2025. Understanding these various funding areas, however, can help set you up for success in your sales efforts.

*Note This budget overview does not include National Security Systems because those numbers are classified. All budget amounts in this blog are taken from the President’s Budget Request for FY2025.)

This blog was adapted from a commentary originally published in Washington Technology. For the full commentary, click here.

Grier Eagan

Grier Eagan

Senior Market Intelligence Analyst

Grier Eagan is a senior market intelligence analyst for immixGroup, the public sector business of Arrow Electronics.
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