A novel equation for light propagation in underdense field-ionizing media i
s derived by extending concepts of nonlinear optics into the strong-field d
omain. The equation is first order in the propagation coordinate and is val
id for arbitrarily short pulse durations. Solutions of the first-order wave
equation are found to be in excellent agreement with solutions of the scal
ar wave equation. Furthermore, the polarization response of a field-ionizin
g medium is derived from semiclassical considerations. The polarization rev
eals, in agreement with experiments, a previously unrecognized contribution
that is shown to significantly affect the absorption loss in the presence
of ionization.