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US-Iran War Costs Pentagon Over $38 Billion, CBO Says
A government budget office estimated that the war with Iran has already cost the United States more than $38 billion.
The costs mainly come from replacing weapons and military equipment used in fighting.
The conflict could require as much as $3 billion more each month.
The estimate does not include all costs from soldiers who were killed or injured.
It also leaves out future veterans’ health care and disability payments.
The war may make inflation higher than previously expected through early 2027.
This is partly because less oil and gas are moving through the Strait of Hormuz.
It is also because shipping has been disrupted in the Red Sea.
The Congressional Budget Office estimated that the conflict cost the Department of Defense more than $38 billion through Aug. 1.
The war could cost up to $3 billion monthly, depending on its intensity.
CBO expects the conflict to raise inflation by about 0.5 percentage points through the first quarter of 2027.
The estimate primarily covers replacement of munitions and equipment and excludes long-term personnel and veterans’ costs.
The White House requested $87.6 billion in supplemental funding, including $42.3 billion directly tied to the conflict.
- Who
- The United States, the Department of Defense, the Congressional Budget Office, and lawmakers including Representative Brendan Boyle are involved in the report and funding debate.
- What
- The Congressional Budget Office estimated that the war with Iran has cost more than $38 billion and could cost up to $3 billion monthly.
- Where
- The economic effects include disruptions in the Strait of Hormuz and the Red Sea.
- When
- The estimate covers costs through Aug. 1; the conflict began Feb. 28 and is in its seventh month.
- Why
- The costs are largely attributed to replacing weapons and equipment, while oil, gas, and shipping disruptions are expected to increase inflation.
Critics of the War
Administration and War-Funding Position
Fiscal impact
Critics of the War
Representative Brendan Boyle said the conflict is costing taxpayers tens of billions of dollars while increasing household costs.
Administration and War-Funding Position
The White House requested $87.6 billion in supplemental funding, largely for the war effort.
Estimated military costs
Critics of the War
Boyle cited the Congressional Budget Office estimate as evidence that the conflict is expensive and continuing to impose costs.
Administration and War-Funding Position
Defense Secretary Pete Hegseth previously estimated the cost at $37.5 billion, broadly aligning with the Congressional Budget Office’s figure.
Budget transparency
Critics of the War
The Congressional Budget Office said the Department of Defense did not respond to its request for information and warned that its estimate has considerable uncertainty.
Administration and War-Funding Position
The Congressional Budget Office relied on government databases and public reports to produce its estimate.
Key facts
- Estimated cost through Aug. 1
- More than $38 billion
- Potential ongoing cost
- Up to $3 billion per month or more, depending on the conflict’s intensity
- Expected inflation effect
- About 0.5 percentage points higher than previously estimated
- Inflation timeline
- The effect is expected to continue through the first quarter of 2027
- White House supplemental request
- $87.6 billion
- Conflict-related portion of request
- $42.3 billion, according to the Congressional Budget Office
- Costs excluded
- Military deaths and injuries, plus longer-term veterans’ health care and disability compensation
Quotes
Brendan Boyle
Democratic representative and top Democrat on the House Budget Committee
“Donald Trump and Republicans have spent years telling Americans that we cannot afford to help families here at home, but apparently they can find tens of billions of dollars, and potentially much more, for a reckless war that is leaving Americans to pay the price.”
NDTV
“this nonpartisan CBO report makes clear that the war has also cost American taxpayers tens of billions of dollars and counting, while continuing to drive up costs.”
NDTV
Sources
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