The Congressional Budget Office (CBO) released an assessment Tuesday estimating that the United States’ war against Iran has cost the Department of Defense more than $38 billion through August 1. The office warned that monthly expenses could climb to $3 billion or more, depending on the intensity of the conflict.
Potential inflation impact
CBO analysts said the war is likely to add roughly half a percentage point to inflation through the first quarter of 2027. The increase is tied to reduced oil and natural gas shipments through the Strait of Hormuz and disruptions to shipping in the Red Sea.
Cost estimates align with Defense Department figures
The new estimate closely matches a prior figure cited by Defense Secretary Pete Hegseth, who testified that the war’s cost stood at $37.5 billion. Both numbers stem largely from replacing munitions and equipment lost in combat and do not yet factor in costs for service members killed or injured, nor long‑term veterans’ health care and disability compensation.
Congressional request and funding gap
Rep. Brendan Boyle, the top Democrat on the House Budget Committee, requested the CBO analysis. He noted that the war’s human toll is severe and that the report shows American taxpayers bearing “tens of billions of dollars, and counting.” Boyle also criticized President Trump and Republican leaders for claiming the nation cannot afford domestic assistance while allocating large sums to the overseas conflict.
The White House asked Congress for $87.6 billion in supplemental funding in June, primarily for the war effort, but the request has not been approved. CBO estimates that the portion of that request directly tied to the conflict—$42.3 billion—is about 10 percent higher than the agency’s own cost estimate.
Defense Department response
The Defense Department declined to provide additional information to CBO for its report, a departure from typical practice. CBO noted that its figures rely on government databases and public reports and therefore carry “considerable uncertainty.”
Strategic inventory concerns
A Pentagon inspector general report released Monday highlighted “strategic inventory shortfalls” resulting from the war, underscoring the logistical challenges of sustaining prolonged operations.
As the conflict enters its seventh month without a clear end in sight, voters are watching the fiscal impact alongside rising prices ahead of the upcoming midterm elections, where Republicans currently hold majorities in both the House and the Senate.
Original reporting: KTBS 3 (Shreveport) — read the source article.
