Malmstrom Air Force Base controversy James was confronted by reports of morale problems in the ranks of the
AFGSC within a month of assuming office. The
Air Force Office of Special Investigations had been looking into alleged use of synthetic drugs by the airmen of the
341st Missile Wing at
Malmstrom Air Force Base in Montana. During the probe it was learned that cheating on monthly proficiency exams was taking place. Altogether, 92 officers were identified as involved in the cheating scandal. James responded by saying, "this was a failure of some of our Airmen; it was not a failure of the nuclear mission." Within a year she visited the three Air Force bases that operate intercontinental ballistic missiles (ICBM's) to identify and resolve problems leading to morale issues at the bases. She helped establish the
Force Improvement Program (FIP), a grass-roots feedback program designed to quickly identify actionable recommendations. FIP identified more than 300 recommendations for improvement. Immediate improvements included funding to upgrade launch control centers, the underground bunkers where airmen and support staff serve 36-hour shifts 'round the clock; more and better options to transport airmen to LCCs, additional manpower, as well as higher pay. Addressing the 2011–2013 Malmstrom Air Force Base debacle two years later at Aspen Security Forum, James said that, "We never found evidence of cheating beyond that one base, but we did find evidence of systemic problems across the board," which were addressed by increased training, additional incentives, and better development opportunities.
Reducing the size of the Air Force With a congressional mandate to reduce the size of the Air Force, James decided to make cuts in one or two fiscal years instead of the prevailing five year period. James noted that the downsizing was straining the force. She confirmed that the Air Force was able to achieve force size and shape goals in fiscal year 2014, alleviating the need to conduct involuntary force management programs in fiscal year 2015. She made this announcement during an online town hall meeting. The Air Force began 2014 fiscal year with 330,700 active-duty airmen; by November 6, 2014 this had dropped to 316,500 - the smallest since Air Force establishment in 1947. Pay was increased significantly to incentivize RPA pilots to remain in the program beyond their six-year commitment. ==Identifying then current issues and threats==