In Jan. 2007, the Pres. announced a new U.S. strategy to stem the violence in Iraq and help the Iraqi gov¿t. foster conditions for national reconciliation. In ¿The New Way Forward,¿ the Admin. articulated near-term goals to achieve over a 12- to 18-month period and reasserted the end state for Iraq: a unified, democratic, federal Iraq that can govern, defend, and sustain itself and is an ally in the war on terror. To support this strategy, the U.S. increased its military presence and financial commitments for Iraq operations. This testimony discusses: (1) progress in meeting key security, legislative, and economic goals of ¿The New Way Forward¿; and (2) past and current U.S. strategies for Iraq and the need for an updated strategy. Illus.