Iran war cost tops $40B and billions more monthly, budget analysis finds

The nonpartisan Congressional Budget Office found U.S. military operations against Iran, launched by President Trump alongside Israel in February, have already cost more than $40 billion and will keep costing $2-3 billion monthly. CBO Director Phillip Swagel said the Defense Department refused to answer the office's requests for information, forcing analysts to rely on public reports and government databases instead, which he says makes the estimate "subject to considerable uncertainty."

The report flags a depleted stockpile of missile defense interceptors as the biggest hidden cost, one that would become "especially problematic" against an adversary with large missile arsenals of its own. CBO also expects the war to nudge inflation up 0.5 percentage points in early 2027 via energy prices, driven by increased risk in the Strait of Hormuz. None of these estimates include costs to killed or wounded servicemembers, veterans' care, or damaged bases and equipment, since the Pentagon hasn't said what it plans to rebuild or who'll pay for it.

A separate inspectors general report put the cost at $33.4 billion through late June, not counting anything since. The Trump administration has asked Congress for $87.6 billion in emergency funding, including $67.15 billion for Defense, but lawmakers haven't approved it and aren't likely to before the midterms.

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