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1 (February 9, 2004)

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                                                                Order Code RS21644
                                                           Updated February 9, 2005



 CRS Report for Congress

              Received through the CRS Web



  The Cost of Operations in Iraq, Afghanistan,

                  and Enhanced Security

                              Amy Belasco
                      Specialist in National Defense
              Foreign Affairs, Defense, and Trade Division

Summary


     Since the 9/11 terrorist attacks, CRS estimates that the Department of Defense
 (DOD) has received over $201 billion for combat operations, occupation, and support
 for military personnel deployed or supporting operations in Iraq and Afghanistan and for
 enhanced security at military installations, collectively called the global war on
 terrorism. That includes $25 billion to cover some of DOD's FY2005 costs. On
 January 25, 2005, the White House announced it would request $80 billion more for
 these operations in its FY2005 Supplemental, including about $75 billion for DOD. If
 Congress approves that amount, DOD' s funding through FY2005 for these missions will
 exceed $275 billion. Much of the debate about the new supplemental may focus on the
 cost and duration of U.S. involvement in Iraq and the global war on terrorism. CBO
 recently estimated that military operations in Iraq and Afghanistan could cost $458
 billion from FY2005 through FY2014 in addition to amounts already received.

     While the Defense Department has provided various data to the Congress, it has
 not given Congress a full allocation of funding for Iraq, Afghanistan, and enhanced
 security. Based on data from DOD, CRS estimates that DOD expected to spend about
 $100 billion for Iraq, $50 billion for Afghanistan, and $23 billion for enhanced security
 through the end of FY2004. Between FY2002 and FY2005, Congress appropriated
 about $27 billion to other agencies for reconstruction and embassy operations in Iraq and
 Afghanistan. With those costs, total funding would be about $148 billion for Iraq and
 $58 billion for Afghanistan as of the end of the 108th Congress. If Congress approves
 the $75 billion requested and if the cost for Afghanistan remains steady, CRS estimates
 that DOD's contractual costs could total about $192 billion for Iraq, about $58 billion
 for Afghanistan, and about $20 billion for enhanced security by the end of FY2005.


 Likely FY2005 Funding Compared to Previous Funding

    According to press reports, the White House is likely to request an additional $75
billion to cover DOD's FY2005 costs for Iraq, Afghanistan, and enhanced security, as


Congressional Research Service **o The Library of Congress

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