Al-Qaeda and allied groups continue to pose a threat to the United States. Although it is less severe than the catastrophic proportions of a 9/11-like attack, the threat today is more complex and more diverse than at any time over the past nine years. Al-Qaeda or its allies continue to have the capacity to kill dozens, or even hundreds, of Americans in a single attack. A key shift in the past couple of years is the increasingly prominent role in planning and operations that U.S. citizens and residents have played in the leadership of al-Qaeda and aligned groups, and the higher numbers of Americans attaching themselves to these groups. Another development is the increasing diversification of the types of U.S.-based jihadist militants, and the groups with which those militants have affiliated. Indeed, these jihadists do not fit any particular ethnic, economic, educational, or social profile. Al-Qaeda's ideological influence on other jihadist groups is on the rise in South Asia and has continued to extend into countries like Yemen and Somalia; al-Qaeda's top leaders are still at large, and American overreactions to even unsuccessful terrorist attacks arguably have played, however inadvertently, into the hands of the jihadists. Working against al-Qaeda and allied groups are the ramped-up campaign of drone attacks in Pakistan, increasingly negative Pakistani attitudes and actions against the militants based on their territory, which are mirrored by increasingly hostile attitudes toward al-Qaeda and allied groups in the Muslim world in general, and the fact that erstwhile militant allies have now also turned against al-Qaeda. This report is based on interviews with a wide range of senior U.S. counterterrorism officials at both the federal and local levels, and embracing the policy, intelligence, and law enforcement communities, supplemented by the authors' own research.