tes and our partners have disrupted
several serious plots since September 11, including al-Qaida plots to
attack inside the United States.

--Numerous countries that were part of the problem before September 11
are now increasingly becoming part of the solution--and this
transformation has occurred without destabilizing friendly regimes in
key regions.

--The Administration has worked with Congress to adopt, implement, and
renew key reforms like the USA PATRIOT Act that promote our security
while also protecting our fundamental liberties.

Yet while America is safer, we are not yet safe. The enemy remains
determined, and we face serious challenges at home and abroad.

+_Challenges_+

--Terrorist networks today are more dispersed and less centralized.
They are more reliant on smaller cells inspired by a common ideology
and less directed by a central command structure.

--While the United States Government and its partners have thwarted
many attacks, we have not been able to prevent them all. Terrorists
have struck in many places throughout the world, from Bali to Beslan to
Baghdad.

--While we have substantially improved our air, land, sea, and border
security, our Homeland is not immune from attack.

--Terrorists have declared their intention to acquire and use weapons
of mass destruction (WMD) to inflict even more catastrophic attacks
against the United States, our allies, partners, and other interests
around the world.

--Some states, such as Syria and Iran, continue to harbor terrorists at
home and sponsor terrorist activity abroad.

--The ongoing fight for freedom in Iraq has been twisted by terrorist
propaganda as a rallying cry.

--Increasingly sophisticated use of the Internet and media has enabled
our terrorist enemies to communicate, recruit, train, rally support,
proselytize, and spread their propaganda without risking personal
contact.

+Today's Terrorist Enemy+

The United States and our partners continue to pursue a significantly
degraded but still dangerous al-Qaida network. Yet the enemy we face
today in the War on Terror is not the same enemy we faced on September
11. Our effective counterterrorist efforts, in part, have forced the
terrorists to evolve and modify their ways of doing business. Our
understanding of the enemy has evolved as well. Today, the principal
terrorist enemy confronting the United States is a transnational
movement of extremist organizations, networks, and