Iran war costs $38 billion as CBO warns of higher inflation, depleted weapons
The nonpartisan agency describes the consequences of the war that will persist.
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that → cost → war
The war with Iran has cost the United States at least $38 billion through the end of July and is expected to further push inflation higher for American households, according to a nonpartisan Congressional Budget Office (CBO) assessment released Tuesday.
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war → cost → assessment
The CBO also warned that depleted weapon stocks could take a half decade or longer to rebuild, crippling the Pentagon's ability to respond to another major conflict.
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stocks → warn → conflict
It also warns that depleted weapon stocks could take a half decade or longer to rebuild, crippling the Pentagon's ability to respond to another major conflict.
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stocks → warn → conflict
The assessment describes the financial and military consequences that will persist beyond the fighting, leaving the Pentagon with fewer weapons available for another major conflict while skyrocketing energy prices put pressure on household budgets.
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prices → describe → budgets
The report notes that the Pentagon did not cooperate with the analysis or provide information requested by the Congressional Budget Office.
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Pentagon → note → Office
The Pentagon did not respond to ABC News' request for comment on the report.
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Pentagon → respond → report
The CBO serves as Congress' scorekeeper, providing lawmakers with independent estimates of federal spending and the costs of legislation.
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CBO → serve → legislation
Its reports noted it relied heavily on public information.
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it → note → information
The budget office's estimate covers direct costs from the U.S. and Israel launching their campaign against Iran on Feb. 28 through Aug. 1, excluding expenses related to U.S. bases devastated by Iranian bombardments.
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U.S. → cover → bombardments
Munitions account for most of the spending.
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Munitions → account → spending
CBO projects another $2 to $3 billion in monthly costs, but says the bill could climb during sustained fighting.
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bill → project → fighting
Americans will also bear what could be mounting costs adding to already inflation rates, with projections estimating the consequences of the war to add roughly a half percentage point to the inflation rate early next year, meaning the costs of goods, housing and food will continue to rise, driven largely by climbing energy prices stemming from supply disruptions in the Middle East.
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costs → bear → East
Depleted weapons stockpiles
The war has significantly depleted U.S. inventories of missiles and anti-air defense weapons, leaving fewer munitions available for another major conflict.
"The shortfall would become especially problematic if a conflict arose with an opponent whose arsenal included large numbers of ballistic and cruise missiles," the CBO said in its report.
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CBO → deplete → report
Those concerns predate the Iran war.
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concerns → predate → war
A congressionally mandated commission warned in 2024 that the U.S. could largely exhaust its munitions inventories within three to four weeks of a conflict with China.
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U.S. → mandate → China
Some critical weapons, including anti-ship missiles, could run out within days.
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weapons → include → days
"Missile defense interceptors are in short supply because they have been produced at relatively low rates; thus, DoD's inventory of such missiles was limited," the CBO said in its report.
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CBO → produce → report
A Pentagon inspector general report on Monday came to the same conclusion that the massive expenditure of munitions against Iran has "resulted in strategic inventory shortfalls," which revealed significant issues with U.S. force's ability to resupply, as missiles take years to build.
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missiles → come → years
Persistent bottlenecks include the complexity and daunting list of materials and the recruitment of skilled labor to build them.
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bottlenecks → include → them
Patriot and SM-6 interceptors, used to shoot down incoming missiles and drones, cost roughly $4 million each, according to the CBO.
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interceptors → use → CBO
THAAD interceptors cost about $12 million apiece, while more advanced SM-3 interceptors can cost roughly $28 million each.
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interceptors → cost → million
The stark warning on munitions shortages comes just days after Adm. Brad Cooper, the war's top commander, said in an interview on CBS Sunday that he's not concerned about munitions depletions.
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he → come → depletions
"We're armed and ready for any contingency," he said.
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he → say → contingency
President Donald Trump on Monday dismissed the Pentagon IG's report.
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Trump → dismiss → report
The administration has maintained the Pentagon can continue fighting with the arsenal it has.
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it → maintain → arsenal
Care for casualties, damage to bases will push up costs
The war's ultimate cost is likely to be far higher once decades of veterans' disability payments and medical care are included.
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decades → push → payments
More than 800 U.S. troops have been wounded, with traumatic brain injuries emerging as the conflict's signature wound.
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injuries → wound → wound
"Counting munitions expended while leaving veterans' care and benefits is not a real war-cost analysis," Rep. Mark Takano, of California, the ranking Democrat on the House Veterans Affairs Committee said in a statement to ABC News.
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Takano → count → News
"It is a bill sent to veterans and taxpayers later.
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It → send → veterans
CBO's estimate excludes much of the costs associated with the damage to U.S. bases in the Middle East, including those in Kuwait, Bahrain and Jordan, some of which have been devastated by Iranian bombardments.
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some → exclude → bombardments
Pentagon planners have long anticipated shrinking the military's footprint in the region to shift resources to the Pacific.
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planners → anticipate → Pacific
The analysis comes as Congress has not enacted funding to cover the costs of the Iran war.
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Congress → come → war
In July, the House passed a $95 billion budget blueprint to provide up to $60 billion for military funding.
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House → pass → funding
The plan would also provide up to $13 billion for intelligence costs, totaling $73 billion to cover the Iran war.
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plan → provide → war
The Senate has no immediate plans to move on the budget blueprint to provide Iran war funding before the midterm elections.
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Senate → have → elections
Historically, conflicts have had special supplemental funding as to not eat much into the military's day-to-day operational needs in its $1 trillion budget.
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conflicts → have → budget
ABC News was first to report that the Army has dramatically scaled down much of its training this year, partly to accommodate the enormous surprise expense of the conflict.
"
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Army → report → conflict
No, I mean that'll probably be a post-election push," Senate Majority Leader John Thune, R, S.D., told reporters on Tuesday.
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Thune → mean → Tuesday
House Budget Committee ranking Democrat Brendan Boyle of Pennsylvania said the report, "makes clear that the war has also cost American taxpayers tens of billions of dollars and counting, while continuing to drive up costs.
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cost → rank → costs
…and 1 more, not listed.
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