The purpose of this study is to assess risks associated with the way in which U.S. armed forces contingency operations are financed. This assessment includes: (1) An analysis of the strategic operating environment. This analysis reveals significant post Cold War trends that suggest past methods of financing contingency operations are no longer appropriate. (2) A study of how contingency operations are currently financed and an assessment of the risks associated with these methods. This analysis tracks the flow of funds for three recent contingency operations. (3) A new approach to financing contingency operations to mitigate the risks associated with a changing strategic environment and more efficiently allocate resources is presented. The major findings are that the post Cold War strategic environment is changing in ways that are likely to increase the frequency and scope of contingency operations. Current methods of financing contingency operations are highly controlled, inflexible and inadequate for meeting national security needs. Mission financing is an approach to resourcing contingency operations that facilitates adaptation to the needs of a changing strategic environment to provide a better match between resources and mission requirements.