From ABC News · ABC News · · 2m
The $38 billion bill for the Iran war
A nonpartisan budget office just put a number on the Iran war, and the number is only the start.
In brief
A nonpartisan budget office just put a number on the Iran war, and the number is only the start. The $38 billion figure is a floor, not a ceiling: it leaves out veterans' care, wrecked bases, and years of rebuilding missile stocks. Originally reported by ABC News.
A number lands on the war
The Congressional Budget Office says the war with Iran has cost the US at least $38 billion through the end of July. The report came out Tuesday.
What the count covers
The estimate runs from the Feb. 28 launch of the US and Israeli campaign through Aug. 1. Munitions make up most of the spending.
Two to three billion a month
CBO projects another $2 to $3 billion in monthly costs, and says the bill could climb higher if the fighting keeps up.
Your groceries feel it too
The war is projected to add about half a percentage point to inflation early next year. Energy supply disruptions in the Middle East push up food, housing and goods.
The missile shelves are thin
US stocks of missiles and anti-air interceptors are badly drawn down, leaving fewer weapons on hand if another war starts.
“The shortfall would become especially problematic if a conflict arose with an opponent whose arsenal included large numbers of ballistic and cruise missiles.”
This warning is not new
A congressionally mandated commission said in 2024 that a war with China could exhaust US munitions in three to four weeks. Anti-ship missiles could run out in days.
Interceptors cost a fortune
Patriot and SM-6 interceptors run about $4 million each. THAAD costs roughly $12 million a shot, and advanced SM-3s about $28 million.
Years to rebuild
Missiles take years to produce, held up by complex material lists and a shortage of skilled labor. A Pentagon inspector general found the same strategic inventory shortfalls.
The Pentagon disagrees
Adm. Brad Cooper, the war's top commander, said he is not worried about depletion. Trump dismissed the IG report, and the Pentagon would not cooperate with CBO's analysis.
“We're armed and ready for any contingency.”
The costs nobody counted
More than 800 US troops have been wounded, with traumatic brain injury the signature wound. Decades of disability payments and medical care sit outside the $38 billion.
“Counting munitions expended while leaving veterans' care and benefits is not a real war-cost analysis.”
Congress has not paid for it
No funding has been enacted. The House passed a $95 billion blueprint in July, but Senate Majority Leader John Thune says a war-funding push waits until after the midterms.
“Well, not before the election. No, I mean that'll probably be a post-election push.”
The one thing
The $38 billion figure is a floor, not a ceiling: it leaves out veterans' care, wrecked bases, and years of rebuilding missile stocks.
