While the FZY 1993 budget represents a milestone on the path to a smaller, post-Cold War defense force, the first two years of the transition (fiscal years 1991 and 1992) were overshadowed and to some degree distorted by the demise of the Soviet Union and the Persian Gulf War. As a result, the Fy 1993 budget cycle becomes the breathing space for recalibrating thinking about the real long-term security needs of our nation. It also requires us to reaffirm concepts on the kind of defense the United States must possess and how much the nation is prepared to fund. While this budget is derived from the Secretary of Defense's Base Force Plan, big issues still on the table involve structure, sizing, future systems, time-phasing and, last but not least, future funding levels. Full debate and resolution are not possible during this budget cycle and, therefore, will continue into ensuing budget debates. One of the most profound decisions having a direct bearing on the defense program was the President's announced plan for major reductions to America's nuclear weapons and a modified nuclear strategy. The changes, announced last September and during the state of the union message in January, affect the overall U.S. strategic structure and shift the strategic focus to conventional military forces. This paper provides an analysis of the Army's amended FY 1993 budget in the context of the overall DoD budget. It discusses the status of actions; identifies the issues and debates in Congress; and sizes up the shortfalls. While there are heavy pressures to reduce defense spending more rapidly, the great danger lies in doing so too fast and making irreversible cuts that could result in a security force which is not equal to our needs.