COMMENTARY: Army budget emphasizes security and virtual training
The $6.2 billion plan prioritizes cryptographic modernization, intelligence capabilities, and training, writes immixGroup’s Grier Eagan.
In a previous article on Department of Defense’s fiscal 2025 IT budgeting, we looked at the department as a whole, and followed it up with budgeted Navy IT spending.
Today, we’ll take a deeper dive into the IT funds being allocated to the Army in 2025.
While not seeing the kind of IT budget growth of recent fiscal years, the U.S. Army’s IT budget still highlights modernization and development, accelerating innovation through digital transformation.
In fiscal 2025, Army investments are focused on improving security of electronic communications, data sharing and utilization capabilities through AI tools, and creating a virtual training environment.
The service’s 2025 IT budget has decreased in steady-state funding compared with 2024 ($4.152 billion versus $4.281 billion, respectively). Development, modernization and enhancement budgeting, however, has risen nominally to $2.09 billion, up from $2.011 billion in 2024.
The following are a few of the key investments and categories of programs being undertaken by the Army for 2025.
(Note: This Army budget overview does not include National Security Systems because those numbers are classified. All budget amounts that are contained in this article are taken from the President’s Budget Request for Fiscal 2025.)
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. The Army's modernization strategy leverages and aligns the use of 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 intended for lifecycle replacement of 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. These devices and cryptographic equipment allow 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, designed 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) – an important tool in achieving a zero-trust environment.
Army Key Management Infrastructure: Budgeting $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). Together, these advancements will let the Army manage, control, plan, and distribute electronic keys necessary to communicate and distribute data on the Army's tactical through strategic networks.
Virtual training environment
Reconfigurable Virtual Collective Trainers (RVCT): The Army is directing $96 million to procure devices in 2025 for delivery in 026. Funding for interim contract support to fielded 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 to provide 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, under cooperative research and development agreements and educational partnership agreements to use technology transfer to develop cyberspace operations. The funds will initiate up to three different prototypes per year to address Army Cyber Command capabilities.
The budget allocations highlighted here are only a small cross-section of the Army’s overall IT spending for fiscal 2025. Understanding these various funding areas, however, can help set you up for success in your sales efforts.
Grier Eagan is senior market intelligence analyst for immixGroup, a public sector business of Arrow Electronics. immixGroup delivers mission-driven results through innovative technology solutions for public sector IT. Visit http://www.immixgroup.com/ for more information.