U.S. Military Spending: The Cost of Wars

The charts and tables in this section summarize the actual and projected cost of U.S. wars as reported for the OCO accoun—drawing heavily largely on earlier work by the Congressional Research Service.

• The Department of Defense's OCO costs of the Afghan conflict since FY2001 will rise to $840.7 billion—if the President's FY2018 budget request is met. They will be $770.5 billion for Iraq.
• The total costs for all OCO spending between FY2001 and FY2018 will be in excess of $1,909 billion. Given the costs omitted from the OCO budget, the real total cost will almost certainly be well over $2 trillion, even using OCO data as the only costs of the wars.

These latter estimates update a series of earlier CRS analyses, one of which noted that, "Other observers and analysts define war costs more broadly than congressional appropriations and include estimates of the life-time costs of caring for OEF/OIF/OND veterans, imputed interest costs on the deficit, or increases in DOD’s base budget deemed to be a consequence of support for the war…Such costs are difficult to compute, subject to extensive caveats, and often based on methodologies that may not be appropriate…"

Three alternative cost estimates are also summarized in this section.

• One by Lina J. Blimes puts the total cost at $4 to $6 trillion by end FY2016.
• A related estimate by the Watson Institute puts the cost at $4.8 trillion through FY2016.
• A third estimate, by Neta Crawford, puts costs at more than $4.8 trillion through FY2017, plus more than $7.9 trillion in cumulative interest on past appropriations, or more than $12.7 trillion.

It is important to note that separate work by Todd Harrison of CSIS in assessing the overall OCO account—Enduring Dilemma of Overseas Contingency Operations Funding, Transition45 Series, January 11, 2017—states that both Congress and the Obama administration moved items from the base budget to the OCO budget as a way of circumventing the BCA budget caps. Roughly half of the OCO budget ($30 billion) is now being used for programs and activities that were previously funded in the base budget. These issues are discussed in more detail later in this study.

If these alternative estimates—and many others—are taken into account, it is all too clear that the United States now has no official estimate of the cost of its wars. Further, without such an estimate, there is no credible basis for either Executive Branch or Congressional review of the budgets and plans for such wars, much less of the ability to effectively execute given strategies, and provide credible indicators of the cost effectiveness and progress of key elements of military and civil activity.

Link here.