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This paper examines why the Air Force needs to modernize its air and space fleets, explores domestic considerations likely to influence these efforts, and provides a historical perspective on military spending trends and different approaches for determining defense funding levels. It concludes with an assessment of affordability concerns and recommendations. Leaders with a firm understanding of these issues will be better prepared to assess and articulate the potential impacts of funding decisions on national defense. This, in turn, should better posture the Air Force to maximize its contributions to national security as we fight today's wars, while preparing for the future.