The war with Iran has cost the United States at least $38 billion through the end of July, with further inflation expected for American households, according to a nonpartisan Congressional Budget Office (CBO) assessment. The CBO also warned that depleted weapon stocks could take five years or longer to rebuild, potentially hindering the Pentagon's capacity to address another major conflict.
The assessment details financial and military repercussions that are projected to continue beyond the active fighting. The report notes that the Pentagon did not cooperate with the CBO's analysis or provide requested information. The CBO, which serves as Congress's scorekeeper, stated it relied heavily on publicly available information for its estimates. The budget office's estimate covers direct costs from February 28 through August 1, excluding expenses related to U.S. bases damaged by Iranian bombardments.
Munitions represent the largest portion of the spending. The CBO projects an additional $2 billion to $3 billion in monthly costs, with the total potentially increasing during sustained combat. Americans may also face rising costs contributing to inflation rates, as the war's consequences are estimated to add approximately half a percentage point to the inflation rate early next year. This is largely driven by climbing energy prices stemming from supply disruptions in the Middle East.
Depleted Weapons Stockpiles
The conflict has significantly reduced U.S. inventories of missiles and anti-air defense weapons, limiting available munitions for potential future conflicts. "The shortfall would become especially problematic if a conflict arose with an opponent whose arsenal included large numbers of ballistic and cruise missiles," the CBO stated in its report. These concerns about munitions shortages predated the Iran war; a 2024 commission report warned that the U.S. could exhaust its munitions within three to four weeks of a conflict with China, with some critical weapons running out in days.
"Missile defense interceptors are in short supply because they have been produced at relatively low rates; thus, DoD’s inventory of such missiles was limited," the CBO report said. A separate Pentagon inspector general report on Monday reached a similar conclusion, finding that the extensive expenditure of munitions against Iran "resulted in strategic inventory shortfalls" and highlighted significant issues with the U.S. force's ability to resupply, as missile production faces lengthy bottlenecks including complex materials and a shortage of skilled labor.
Patriot and SM-6 interceptors, used for shooting down incoming missiles and drones, each cost approximately $4 million, according to the CBO. THAAD interceptors cost about $12 million apiece, while more advanced SM-3 interceptors can cost around $28 million each. These warnings about munitions shortages come shortly after Adm. Brad Cooper, the war's top commander, stated in an interview that he was not concerned about munitions depletions and that the U.S. is "armed and ready for any contingency." President Donald Trump has dismissed the Pentagon IG's report, and the administration has maintained that the Pentagon's current arsenal is sufficient for continued fighting.
Long-Term Costs and Funding
The war's ultimate cost is expected to be substantially higher when accounting for decades of veterans' disability payments and medical care. More than 800 U.S. troops have been wounded, with traumatic brain injuries being a significant concern. Representative Mark Takano noted that excluding veterans' care and benefits from cost analyses does not reflect a true war-cost assessment. The CBO's estimate also excludes many costs associated with damage to U.S. bases in the Middle East. Congress has not yet enacted specific funding to cover the Iran war's costs. A House-passed budget blueprint in July proposed up to $60 billion for military funding and $13 billion for intelligence costs, totaling $73 billion.
The Senate has not indicated plans to address the budget blueprint before the midterm elections. Historically, conflicts have been funded through special supplemental appropriations to avoid impacting the military's day-to-day operational needs. The Army has reportedly scaled down training this year partly to accommodate the unexpected expenses of the conflict. Senate Majority Leader John Thune suggested that war funding might be a post-election priority. Representative Brendan Boyle stated that the report underscores the war's significant cost to U.S. taxpayers and its contribution to rising prices.