Direct Costs of the War in Iraq

Introduction

This page describes how much the federal government has spent on the war in Iraq and its aftermath. The numbers provided here are merely estimates.

Because the future of the occupation of Iraq by US and coalition forces is uncertain, in terms of its duration and the military commitment and economic aid needed to stabilize and reconstruct Iraq, the cost figures here cannot be considered final.

Spending on the war in Iraq and its aftermath

Reference [5] provides these estimates of spending on the Iraqi war and occupation, and Iraq's reconstruction:

  • $105 billion: military operations (the war and occupation)
  • $23 billion: reconstruction and related aid

Caveats to the Cost Figures

  • These numbers comprise the amounts Congress has appropriated and as such represent budget authority. Some of the funds have not yet been spent; reference [2] suggests that, as of April, 2004, only $2.1 billion of $18.4 billion appropriated in 2004 for reconstruction aid has been obligated.
  • These numbers omit $7 billion in regional economic and military aid to coalition and cooperating nations. However, reference [5] reasonably states that it is not clear how much of this aid should be ascribed to the war in Iraq, the war in Afghanistan, the global war on terror, or none of these three efforts.
  • The numbers overlook the savings of $1--$2 billion per year resulting from the discontinuation of the Iraqi no-fly zones (see [6]).
  • While most discussions of the cost of the war accept the notional separation of federal spending on military operations in Iraq and Afghanistan from regular spending on the military, it's not clear how well the separation reflects true underlying costs.

Appropriating legislation

All federal spending ultimate derives from bills approved by both houses of Congress. In the case of the war in Iraq, most of the funding to date has been provided by two supplemental appropriations bills.

Emergency Wartime Supplemental Appropriations Act, 2003

This act was introduced in the House as H.R. 1559 and was signed by the President on April 16, 2003, becoming Public Law 108-11. It provided roughly $78 billion in funding for

  • military operations and reconstruction aid for US efforts in Iraq and Afghanistan;
  • foreign aid to coalition partners and cooperating states;
  • the global war on terror; and,
  • homeland security.

Breakdown of the spending, according to reference [1] (numbers in billions of dollars):

  • Total spending: $78.488
    • Department of Defense: $62.583
      • Portion related to Iraq: roughly $53 (see reference [7], p. 8)
    • Iraq reconstruction and international assistance: $8.179
      • Iraq reconstruction: $3.298
      • Assistance to coalition partners, cooperating states in war on terrorism: $4.518
      • State Department and other: $0.363
    • Homeland Security: $5.124
    • Aviation industry relief: $3.091
    • Other: $0.208

Reference [7], p. 7, claims that fiscal year Iraq-related spending was later decreased by $3.5 billion (see also [4], p. 271).

Emergency Supplemental Appropriations Act for Defense and for the Reconstruction of Iraq and Afghanistan, 2004

This act was introduced in the House as H.R. 3289 and was signed by the President on November 6, 2003, becoming Public Law 108-106. It provided roughly $87 billion in funding, primarily for

  • military operations and reconstruction aid for US efforts in Iraq and Afghanistan;
  • foreign aid to coalition partners and cooperating states; and,
  • the global war on terror.

Breakdown of the original presidential request (not the bill as passed and signed into law), according to Table 1, p. 5 of reference [3] (numbers in billions of dollars):

  • Total spending: $87.0
    • Defense: $65.6
      • Operation Iraqi Freedom (Iraq): $51.5
      • Operation Enduring Freedom (Afghanistan): $10.5
      • Operation Noble Eagle (Homeland Defense): $2.2
      • Coalition Support: $1.4
    • Foreign Policy: $21.4
      • Iraq Reconstruction: $15.2
      • Iraq Security: $5.1
      • Other Iraq: $0.1
      • Afghanistan Reconstruction: $0.8
      • Other Global War on Terrorism: $0.3

The spending figures in the bill as passed by Congress and signed into law are not drastically different from these. (Numbers for the final version of the bill were not included because of the difficulty in locating useful source materials.)

The numbers in the presidential request were calculated to reflect funding needs through September 30, 2004 for defense and through December 2004 for Iraq reconstruction (see reference [3]).

References

[1] Amy Belasco and Larry Nowels, "Supplemental Appropriations FY2003: Iraq Conflict, Afghanistan, Global War on Terrorism, and Homeland Security," Congressional Research Service, RL31829 (April 18, 2003)
[2] Anthony Cordesman, "The facts we must face," The Washington Post, April 4, 2004
[3] Stephen Daggett, Larry Nowels, Curt Tarnoff, and Rhoda Margesson, "FY2004 Supplemental Appropriations for Iraq, Afghanistan, and the Global War on Terrorism: Military Operations & Reconstruction Assistance," Congressional Research Service, RL32090 (October 15, 2003)
[4] "Department of Defense---Military," in Office of Management and Budget, Budget of the United States Government, Fiscal Year 2005---Appendix (2004), pp. 247--342
[5] Steven M. Kosiak, "Funding for Defense, Military Operations, Homeland Security, and Related Activities since 9-11," Center for Strategic and Budgetary Assessments (January 21, 2004)
[6] Steven M. Kosiak, "One Year Later: The Cost of Military Operations in Iraq," Center for Strategic and Budgetary Assessments (March 18, 2004)
[7] Democratic staff, House Budget Committee, "One Year Later: The Cost of Military Operations in Iraq: An Update" (September 23, 2003)