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Summary:
If both houses of Congress pass the conference version of the FY2006 supplemental bill (H.R. 4939) Congress would have appropriated a total of about $437 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. The $437 billion total does not include the $50 billion “placeholder” figure for FY2007 war costs that is listed in the FY2007 budget because the Administration has not yet
formally submitted its request. The Administration has not yet provided any
information about what the $50 billion would include. DOD has not provided Congress with the costs of these three operations. Of the
$437 billion likely to be appropriated through FY2006, CRS estimates that Iraq will receive about $319 billion (73%), OEF $88 billion (20%), and enhanced base security about $26 billion (6%), with about $4 billion that cannot be allocated based on available information (1%). About 91% of these funds are for DOD, about 8%
are for foreign aid programs and embassy operations, about 1% is unallocated and less than 1% are for medical care for U.S. veterans of Iraq and Afghanistan. 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. During FY2006, these monthly spending levels may increase to about $8.0 billion for OIF and $1.5 billion for OEF. 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 $437 billion with the FY2006 supplemental, total funding for Iraq and the GWOT could reach $808 billion by 2016. DOD’s annual war funding rose from about $73 billion in FY2004 to $102
billion in FY2005, and may reach $118 billion in FY2006 if the pending supplemental is enacted. This report will be updated as warranted.
