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Summary:
CRS estimates that Congress has appropriated a total of about $368 billion 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) covering Afghanistan and other Global War on Terror (GWOT) operations, Operation Noble Eagle (ONE) providing enhanced security at military bases, and Operation Iraqi Freedom (OIF), Iraq. This total includes the $50 billion for war costs included in DOD's regular FY2006 appropriations -- but not the pending FY2006 War Supplemental or the $50 billion `placeholder' figure included in the FY2007 budget. DOD has not provided Congress with the costs of these three operations. Of the $368 billion appropriated so far, CRS estimates that Iraq will receive about $261 billion (71%), OEF $77 billion (21%), and enhanced base security about $26 (7%) billion, with about $4 billion that cannot be allocated based on available information. About 90% of these funds are for DOD and about 9% for foreign aid programs and embassy operations, and less than 1% for medical care for veterans of Iraq and Afghanistan. If Congress approves the additional $71 billion requested in the FY2006 Supplemental (H.R. 4939) for Iraq and OEF -- $67.9 billion for DOD and $3.4 billion for aid and embassy costs -- total war-related funding would rise to about $439 billion. CRS estimates that total includes about $320 billion for OIF, about $89 billion for OEF, and about $26 billion for enhanced security. On a monthly basis, DOD spent an average of about $6.4 billion for OIF, $1.3 billion for OEF and $180 million for enhanced base security in FY2005. Compared to FY2004, these averages are 28% higher for Iraq, 18% higher for OEF, and 33% lower for base security. If a FY2006 supplemental is approved, these monthly spending levels would increase. Potential oversight issues for Congress include getting estimates of the cost to repair and replace war-worn equipment and of possible offsetting cuts to DOD's regular budget because equipment is being fixed or bought earlier than planned. Congress may also want to look at ways to improve war reporting and to evaluate DOD policy and contracting decisions that affect certain types of war support costs. Based on an alternate path that assumes a drawdown from about 258,000 troops currently engaged in these operations to 74,000 in FY2010, CBO estimates that war costs could total $371 billion between FY2007 and FY2016. Adding that amount to the $440 billion already approved or requested, total funding for Iraq and the global war on terrorism could reach $811 billion by 2016. DOD's annual war funding rose from about $73 billion in FY2004 to $102 billion in FY2005, and may reach $120 billion in FY2006 if the pending $68 billion request is enacted. This report will be updated as warranted.
