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Also known as National Missile Defense, BMD is a planned system to protect all 50 U.S. states from incoming missile attack. Throughout the Cold War, the United States relied on deterrence instead of missile defense to counter potential threats. This policy preference was codified by the 1972 Antiballistic Missile (ABM) Treaty between the United States and the Soviet Union. Nonetheless, there were repeated efforts to develop a missile defense system. The Strategic Defense Initiative (SDI) of the administration of Ronald W. Reagan was the most significant manifestation of the drive to develop a BMD system. In its efforts to develop SDI, the Reagan administration unilaterally reinterpreted the ABM Treaty and argued that the development--though not deployment--of space-based antimissile systems were acceptable under the agreement.

Iraq fired 90 Scud missiles during the Persian Gulf War, and these attacks accelerated interest in missile defense systems, as did the North Korean nuclear crises. In 1991, North Atlantic Treaty Organization (NATO) endorsed the development of tactical missile defense systems. The United States, France, Germany, and Italy subsequently launched a multilateral initiative to replace the Patriot Antimissile System under the Medium Extended Air Defense System (MEADS). France withdrew from MEADS in 1996 to develop a unilateral system. In 1997, Washington and Ottawa signed an accord to cooperate on space-based BMD.

At the 1999 NATO Summit in Washington, D.C., the administration of William J. Clinton launched a twin initiative to enhance BMD cooperation and bolster counter-proliferation efforts. However, the BMD proposals were opposed by many alliance members because of the costs. In addition, Russia opposed the effort, and some NATO states were unwilling to risk alienating their former Cold War enemy after years of improving relations. The Senate rejection of the Comprehensive Test Ban Treaty undermined confidence in American efforts to lead on counter-proliferation. Nevertheless, BMD remained popular with congressional Republicans. In 1999, Congress passed, and Clinton signed into law, the National Missile Defense Act. The Act required that the United States develop and deploy a BMD system. In 2000, the United States conducted an unsuccessful BMD test (an interceptor drone failed to destroy a simulated incoming ballistic missile). Russian opposition to BMD prompted Clinton to suspend work on missile defense after the failed test.

After his inauguration in 2001, George W. Bush publicly declared his intent to proceed with BMD, even if it meant unilaterally abrogating the ABM Treaty. Even close American allies questioned Bush's decision. There was concern that the Bush administration would increase tensions with Russia. Allies also feared that if America were successful in deploying BMD, the nation would return to an isolationist foreign policy. In order to reassure allies and build support, Washington offered to extend any BMD system to include key states such as the NATO states, Japan, and Australia. Bush also tried to negotiate a compromise with Russian president Vladimir Putin over the ABM Treaty.

In the aftermath of the September 11 terrorist attacks, Putin dropped his objections to U.S. BMD in an act of support for the Bush administration. Without formal Russian opposition, Bush announced the American withdrawal from the ABM Treaty on 13 December 2001 to take effect after the required six-month notification period. Russia even began to work with the United States and its allies on missile defense. Moscow was invited to participate with NATO on tactical missile defense and, in 2004, NATO and Russia conduct their first joint BMD exercises. Meanwhile, the alliance affirmed its interest in BMD with the creation of the NATO Missile Defense Project Group, which was tasked to develop agreements on missile defense and ensure interoperability. In 2003, Australia announced that it would collaborate with the United States on BMD.

In 2002, the U.S. Ballistic Missile Defense Organization, the agency with primary responsibility for BMD, was transformed into the Missile Defense Agency. From that year onward, America spent about $9 billion per year on BMD. In 2005, the United States began initial deployment of the BMD system. The first phase included 20 ground-based (10 in Alaska and 10 in California) and 20 ship-based interceptor missiles and an air-launched Patriot missile system. In addition, there were upgrades to missile tracking facilities in the United States (in Alaska) and in Great Britain and Denmark. A new class of ballistic missile sensors was deployed on naval vessels.

Both domestic and international critics of BMD questioned the costs of the program and argued that the funds could be better spent on homeland security programs such as border protection and cargo inspection. They also argued that BMD could give the United States a false sense of security and encourage enemies to attempt to attack America by smuggling a nuclear device into the country. Meanwhile, no system envisioned would be able to destroy the 2,400 ballistic missiles of Russia. Finally, opponents asserted that potential enemy states such as North Korea or Iran did not possess ballistic missiles with the range to hit the United States.

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