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Tuesday, August 3, 2010

The Cost of Iraq, Afghanistan, and Other Global War on Terror Operations Since 9/11


Amy Belasco
Specialist in U.S. Defense Policy and Budget


With the December 2009 enactment of the FY2010 Defense Appropriations Act (H.R. 3326/P.L. 111- 118) and the FY2010 Consolidated Appropriations Act (H.R. 3288/P.L. 111-117), Congress has approved a total of $1.086 trillion for military operations, base security, reconstruction, foreign aid, embassy costs, and veterans' health care for the three operations initiated since the 9/11 attacks: Operation Enduring Freedom (OEF) Afghanistan and other counter terror operations; Operation Noble Eagle (ONE), providing enhanced security at military bases; and Operation Iraqi Freedom (OIF).

Of this $1.086 trillion total, CRS estimates that Iraq will receive about $748 billion (69%), OEF about $304 billion (28%) and enhanced base security about $29 billion (3%), with about $5 billion that CRS cannot allocate (1%). About 94% of the funds are for DOD, 5% for foreign aid programs and embassy operations, and 1% for medical care for veterans.

As of April, 2010, more than halfway through FY2010, monthly spending, or obligations for contracts and military and civilian pay, averaged $10.9 billion, including $5.4 billion for Iraq and $5.5 billion for Afghanistan. While this year's average to date is 11% below last year's $12.3 billion average, average spending may grow as troop levels rise to 98,000 in Afghanistan and fall to 50,000 in Iraq because higher costs in Afghanistan may more than offset decreases in Iraq.

Congress is currently considering the FY2010 Supplemental request for an additional $36.6 billion for DOD and the State Department, largely to cover the cost of deploying 30,000 additional troops to Afghanistan that President Obama announced on December 1, 2009. Most recently, the House adopted an amended version on June 30th and the Senate passed its version on May 27th, 2010. Instead of a formal conference, the Senate is expected to revise the House version and send it back to the House, in a "ping pong" process, sometime in July.

If the pending FY2010 supplemental request is enacted, cumulative war costs would total $1.1 trillion including $751 billion for Iraq, $336 billion for Afghanistan, and $29 billion for enhanced security. By FY2010, Afghanistan would account for about two-thirds of the cost and Iraq one-third, a reversal of the previous year.

The Administration requested $171 billion in both FY2010 and FY2011 while average troop strength for both wars is due to fall from 185,000 to 145,000, a 20% drop. Average strength in Iraq would fall from 100,000 in FY2010 to 43,000 in FY2011 while strength in Afghanistan would grow from 84,000 in FY2010 to 98,000 in FY2011. The final withdrawal from Iraq is slated to be complete by December 2011, the end of the first quarter of FY2012, as required by the U.S.-Iraq Security Agreement.

If both the Administration's FY2010 Supplemental and FY2011 war request are enacted, total war related funding would reach almost $1.3 trillion, including $802 billion for Iraq, $455 billion for Afghanistan, $29 billion for enhanced security, and $6 billion that cannot be allocated. Of this cumulative total, 62% would be for Iraq, 35% for Afghanistan, and 2% for enhanced security.

In a January 2010 update, the Congressional Budget Office projected that additional war costs for FY2012-FY2020 could range from $274 billion if troop levels fell to 30,000 by early 2013 to $588 billion if troop levels fell to 60,000 by about 2015. Under these CBO projections, funding for Iraq, Afghanistan and the Global War on Terror could total from about $1.56 trillion to about $1.88 trillion for FY2001-FY2020 depending on the scenario. 
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Date of Report: July 16, 2010
Number of Pages: 53
Order Number: RL33110
Price: $29.95


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