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Tuesday, April 12, 2011

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 enactment of the sixth FY2011 Continuing Resolution through March 18, 2011, (H.J.Res. 48/P.L. 112-6) Congress has approved a total of $1.283 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). This estimate assumes that the current CR level continues through the rest of the year and that agencies allocate reductions proportionately.

Of this $1.283 trillion total, CRS estimates that Iraq will receive about $806 billion (63%), OEF $444 billion (35%) and enhanced base security about $29 billion (2%), with about $5 billion that CRS cannot allocate (1/2%). About 94% of the funds are for DOD, 5% for foreign aid programs and diplomatic operations, and 1% for medical care for veterans.

Between FY2009 and FY2010, average monthly DOD spending for Afghanistan grew from $4.4 billion to $6.7 billion a month, a 50% increase while average troop strength almost doubled from 44,000 to 84,000 as part of the troop surge announced by the President last year. Troop strength in Afghanistan is expected to average 102,000 in FY2011. DOD’s plans call for troop levels to fall by less than 4,000 in FY2012 unless the President decides otherwise as part of his decision to “begin transition to Afghan security lead in early 2011. . . [to a ] a responsible, conditions-based U.S. troop reduction in July 2011.” At the same time, the President announced a long-term U.S. commitment to a NATO summit goal of “a path to complete transition by the end of 2014.” It is currently unclear how quickly or slowly troop levels will fall this summer or in later years to meet these goals.

While spending on Afghanistan grew between FY2010 and FY2011, DOD’s average spending in Iraq fell from $7.9 billion to $6.2 billion or by about 20% while troop strength dropped from 141,000 to 96,000, by about one-third, as the U.S. withdrawal continues. Troop strength in Iraq is projected to average 43,000 in FY2011 and to fall to 4,450 in FY2012 with all troops out of Iraq by December 2011 according to the U.S. security agreement with Iraq.

On March 18th, 2011, the sixth FY2011 Continuing Resolution was enacted (H.J.Res. 48/P.L. 111-6). In the case of DOD’s war funding, the current CR, H.R. 1, and S.Amdt. 149 to H.R. 1 all set DOD’s war funding at close to the FY2011 request. For State Department diplomatic operations and foreign aid, the current CR could reduce funding by about $1 billion below the FY2011 request of $7.6 billion. VA medical spending is likely to match the request.

CRS has lowered its previous estimate of war funding in FY2010 to $165 billion because DOD spent about $3 billion less than anticipated, transferring $885 million of war funds to its base budget and allowing some $2 billion in funding to lapse and be returned to the Treasury. Congress also included about $5 billion in non-war programs in funding designated as for “Other Contingency Operations.”

Although DOD’s FY2012 request of $118 billion fell in proportion to the 25% fall in troop levels from 212,000 in FY2011 to 158,000 in FY2012, this funding could be more than necessary in light of recent experience and potential troop decreases. If the overall war FY2012 request of $132 billion is enacted, war funding since the 9/11 attacks would reach $1.415 trillion.

According to CBO’s latest projection, war costs for FY2012-FY2021 could total another $496 billion if troop levels fell from 180,000 in FY2011 to 45,000 by FY2015 and remained at that level through FY2021. Under that scenario, war costs through FY2021 would total $1.8 trillion.



Date of Report: March 29, 2011
Number of Pages: 59
Order Number: RL33110
Price: $29.95

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