Abstract. During the past two years, the U.S. heavy ion fusion science program has made significant experimental and theoretical progress in simultaneous transverse and longitudinal beam compression, ion-beam-driven warm dense matter targets, high brightness beam transport, advanced theory and numerical simulations, and heavy ion target designs for fusion. First experiments combining radial and longitudinal compression of intense ion beams propagating through background plasma resulted in on-axis beam densities increased by 700X at the focal plane. With further improvements planned in 2007, these results will enable initial ion beam target experiments in warm dense matter to begin next year at LBNL. We are assessing how these new techniques apply to low-cost modular fusion drivers and higher-gain direct-drive targets for inertial fusion energy.