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The Army is revising its software directive and discontinuing its existing funding policy to enable more flexible financial support for software initiatives. Undersecretary Michael Obadal announced plans to pursue a new funding category, Budget Activity 8 (BA-8), aimed at addressing challenges in software acquisition by moving away from hardware-centric budgeting. This shift, contingent on legislative approval, follows the Defense Department's efforts to explore alternative funding paths since 2019.