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Cost of Military Operations

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Since 2001, Congress has appropriated about $302 billion to cover the cost of US military operations in Afghanistan ($76 billion) and Iraq ($226 billion). This figure includes a down payment of some $50 billion for fiscal year (FY) 2006 costs. In addition, Congress has provided Afghanistan and Iraq, respectively, with about $7 billion and $25 billion in non-Department of Defense (DoD) funding for reconstruction and related efforts. It is impossible to estimate with confidence how much additional funding will be needed to cover the cost of US military operations in these two countries in 2006 and beyond—due not only to uncertainty concerning the size, duration and intensity of the US military operations in Afghanistan and Iraq, but also to significant gaps in cost, funding and related data.

However, it seems almost certain that the Bush Administration will request at least another $35 billion, and possibly substantially more, for military operations in 2006. This would bring the total amount appropriated to DoD for military operations to $337 billion, including some $83 billion for Afghanistan and $254 billion for Iraq, by the end of this year.

Projecting funding requirements beyond 2006 becomes highly speculative. Those costs could vary dramatically, depending primarily on how many troops the United States keeps in Afghanistan and Iraq, and for how long. If the United States were to decide to withdraw its troops from Iraq in relatively short order, for example, over the next 18 months—as has been suggested by some critics outside the administration —but keep a small number of troops deployed in Afghanistan through the coming decade, an additional $100 billion might suffice. On the other hand, if the United States were to keep forces in Iraq through the next decade, even at substantially reduced levels—as some believe might be necessary to defeat the insurgency —and also keep troops in Afghanistan, another $310 billion could be needed.

Taken together, these estimates suggest that the total cost to DoD of these military operations could, ultimately (i.e., by 2015), range from some $440 billion to $650 billion, including perhaps $150 billion for the war in Afghanistan and $290-500 billion for the war in Iraq.