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The Second Gulf War/Iraq Invasion II - The Financing of the War

Background

Media Reports

Government Reports

Graphic Credits

 

Background

 

“When President Bush’s emergency supplemental funding request is granted by Congress in the coming weeks, the cost of the Iraq War will reach ten times its original projected cost of $ 50-60 billion, CNN reports. At what will soon be a total tab of $ 576 billion, the Iraq war is second in cost only to World War II. According to CNN’s report, every minute troops are deployed in Iraq, the American public pays $200,000 to keep them there. […] Additionally, the current conflict is the first in American history not to be paid for in real time. […] The Bush administration, however, is well known for its propensity to cut taxes and increase spending. […] Says Robert Hormats of Goldman Sachs, author of The Price of Liberty, a new book examining the history of American military funding. ‘We’ve in effected shifted the cost of this war to future generations.’ […]”

 

Excerpt of an article from “Raw Story” from November 2nd, 2007.

The DoD Budget - past and previsioned

 

Media Reports

 

August 29th, 2010 - US Wasted Billions in Rebuilding Iraq

1 news article from the Associated Press

 

April 10th, 2009 - More Funds Sought for Iraq and Afghanistan

1 news article from the Washington Post

 

February 27th, 2009 - Obama Seeks $205 Bln for Iraq and Afghan Wars

1 news article from Reuters

 

August 12th, 2008 - Report: Iraq Contracts Have Cost Billions

1 news article by the Associated Press

 

May 23rd, 2008 - 15 Billion Dollars in US Iraq Spending Unaccounted for: Reports

2 news articles by Agence France Presse & Washington Post

 

March 21st, 2008 - Democrats Want Contract Fraud Documents

1 news article by the Associated Press

 

March 9th, 2008 - Studies: Iraq Costs US $12B Per Month

1 news article by the Associated Press

 

November 2nd, 2007 - CNN: Price of Iraq War 10 Times Pre-War Predictions

1 news article by Raw Story

 

October 30th, 2007 - Democrats Consider More Money for War

1 news article by the Associated Press

 

August 12th, 2007 - U.S. Pays Millions In Cost Overruns For Security in Iraq

1 news article by the Washington Post

 

August 6th, 2007 - House Approves Pentagon Budget Minus the President’s War Funding

1 news article by the Associated Press

 

February 3rd, 2007 - Record $ 622 Billion Budget Requested for the Pentagon

1 news article by the New York Times

 

December 15th, 2006 - Pentagon Eyes $ 468.9 bln Budget for Fiscal 2008

1 news article by Reuters

 

October 25th, 2006 - Idle Contractors Add Millions to Iraq Rebuilding

1 news article by the New York Times

 

May 13th, 2006 - In a Dispute, Army Cancels Rebuilding Contract in Iraq

1 news article by the New York Times

 

March 13th, 2006 - U.S. Spending Billions to ‘Defeat’ IEDs in Iraq

1 news article by the Associated Press

 

Government Reports

 

May 15th, 2009 - The Cost of Iraq, Afghanistan, and Other Global War on Terror Operations

Report by the Congressional Research Service

 

“[…] Based on new DOD estimates, the cumulative total for funds already appropriated since the 9/11 attacks to DOD, State/USAID and VA for medical costs for the wars in Iraq, Afghanistan and enhanced security is $ 864 billion including:

 

- $ 642 billion for Iraq;

- $ 189 billion for Afghanistan;

- $ 28 billion for enhanced security; and

- $ 5 billion unallocated […]

 

“Of this total, 74% if for Iraq, 22% for Afghanistan, 3% for enhanced security and 1% unallocated. Almost all of the funding for Operation Enduring Freedom (OEF) is for Afghanistan. […]”

 

November 3rd, 2008 - Defense: FY2009 Authorization and Appropriations

Report from the U.S. Congressional Research Service

 

“[…] The President’s FY2009 federal budget request, released February 4, 2008, included $611.1 billion in new budget authority for national defense. This total included $515.4 billion in discretionary new budget authority for the base budget of the Department of Defense (DOD) - i.e., activities not associated with combat operations in Iraq and Afghanistan. The budget included an additional $2.9 billion in mandatory spending for the DOD base budget and $22.8 billion for defense costs of the Department of Energy and other agencies. In addition to the $541.1 billion requested for the base line (i.e., non-war cost) budget, the request also included an unallocated placeholder of $70 billion to cover war costs in the first part of FY2009.

 

“On April 30 the Senate Armed Services Committee marked up its version of the FY2009 defense authorization bill (S. 3001), authorizing the appropriation of $612.5 billion in new budget authority for national security programs, including $542.5 billion for the base line budget and a $70 billion allowance for war-related costs. The committee approved without major change the funding requests for several programs that have been the subject of controversy, including the Army’s Future Combat Systems (FCS) and the Navy’s DDG-1000 destroyer. On September 17, the Senate passed the authorization bill by a vote of 88-8. Because of a controversy over earmarks, the Senate considered only four amendments to the bill, adopting three. […]”

 

July 16th, 2007 - The Cost of Iraq, Afghanistan and other Global War on Terror Operations

CRS Report for Congress

 

“[…] With enactment of the FY2007 supplemental on May 25, 2007, Congress has approved a total of about $610 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) Afghanistan and other counter terror operations; Operation Noble Eagle (ONE), providing enhanced security at military bases; and Operation Iraqi Freedom (OIF).

 

“The $610 billion total covers all war-related appropriations from FY2001 through the May 25, 2007 enactment of the FY2007 Supplemental (H.R. 2206/P.L.110-28) including funds in both supplementals and regular appropriations acts for DOD, State Department/AID, and VA Medical costs. For FY2007, funds for Iraq and Afghanistan were appropriated in the FY2007 Supplemental, DOD’s FY2007 Appropriations (H.R. 5631/P.L.109-289), and the Year-Long Continuing Resolution (H.J.Res 20/P.L.110-5).

 

“Of the $610 billion appropriated thus far, CRS estimates that Iraq will receive about $450 billion (74%), OEF about $127 billion (21%), and enhanced base security about $28 billion (5%), with about $5 billion that CRS cannot allocate (1%). Of this total funding, 93% of the funds is for DOD, 7% for foreign aid programs and embassy operations, and less than 1% for medical care for veterans.

 

“In February 2007, the Congressional Budget Office estimated that war costs for the next 10 years might total about $472 billion if troop levels fell to 30,000 by 2010, or $919 billion if troop levels fell to 75,000 by about 2013. Under such assumptions and adjusting for the FY2007 Supplemental, total funding for Iraq, Afghanistan and the GWOT could reach from about $1 trillion to $1.45 trillion by 2017.

 

“For DOD, war appropriations rose steeply in FY2007. DOD received $165.8 billion for war costs in FY2007 - about 40% more than the previous year. In FY2007, the State Department will receive about $6.3. billion for Iraq and Afghanistan for foreign and diplomatic operations, and VA medical costs for OIF/OEF veterans will be about $1 billion, according to CRS estimates.

 

“For FY2008, the Administration has requested $141.7 billion for DOD’s war costs, $4.6 billion for foreign and diplomatic operations, and about $800 million for VA medical costs. If Congress approves these requests, total funding for Iraq and the Global War on Terror would reach about $758 billion, including about $567 billion for Iraq, $157 billion for Afghanistan, $29 billion for enhanced security, and $5 billion unallocated. […]”

 

July 13th, 2007 - U.S. Embassy in Iraq

CRS Report for Congress

 

May 2nd, 2007 - FY2007 Supplemental Appropriations for Defense, Foreign Affairs, and Other Purposes

CRS Report for Congress

 

“[…] On May 1, the Congress formally presented to the President a House-and-Senate passed version of H.R. 1591, a bill providing supplemental appropriations for FY2007 and setting target dates for withdrawing most U.S. military forces from Iraq. That evening, the President vetoed the bill. On May 2, by a vote of 222-203, with approval of 2/3 required, the House failed to override the veto. House and Senate leaders are now considering what steps to take next. House appropriators have discussed a possible 60 day extension of funds for military operations. Leading Republicans have discussed a possible compromise that would establish benchmarks for progress by the Iraqi government. It remains unclear if an agreement that did not restrict funding in some way would be acceptable to the Democratic majority. […]”

 

January 25th, 2007 - The Federal Government Debt: Its Size and Economic Significance

Report by the Congressional Research Service

 

“[…] After being in surplus between FY1998 and FY2001, the federal budget has now registered deficits for the last four fiscal years. The budget, given current policies, is now projected to remain in deficit through FY2011. When the budget was in surplus, the policy issues were whether or not it would be worthwhile to pay off the national debt and whether or not the existence of public debt provided some economic benefits. For the time being, those are no longer issues. Instead, the question is what are the risks associated with a rising federal debt.

 

“At the beginning of 2007, total gross federal debt is over $ 8.6 trillion. While gross federal debt is the broadest measure of the debt, it may not be the most important one. The debt measure that is relevant in an economic sense is debt held by the public. This is the measure of debt that has actually been sold in credit markets, and which has influenced interest rates and private investment decisions. At the beginning of 2007, the debt held by the public is just over $ 4.9 trillion. The remaining $ 3.7 trillion was held by various federal agencies. […]”

 

March 14th, 2006 - The Cost of Iraq, Afghanistan and other Global War on Terror Operations

CRS Report for Congress

 

“[…] With enactment of FY2007 appropriations, Congress has approved a total of about $ 510 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 counter terror operations, Operation Noble Eagle (ONE) providing enhanced security at military bases, and Operation Iraqi Freedom (OIF), Iraq.

 

“The $ 510 billion total includes the $ 70 billion in DOD’s regular FY2007 bill intended to bridge the gap between the first part of the fiscal year and passage of a supplemental as well as war-related appropriations for other agencies included in the FY2007 Continuing Resolution (H.J.Res 20/P.L.110-5).

 

“Of the $ 510 billion appropriated thus far, CRS estimates that Iraq will receive about $ 378 billion (74%), OEF about $ 99 billion (19%), enhanced base security about $ 28 billion (5%) with about $ 5 billion that CRS cannot allocate (1%). Generally, about 90% of these funds are for DOD, about 7% for foreign aid programs and embassy operations, less than 1% for medical care for veterans, and 1% unallocated. DOD has not provided Congress with the cost of each operation for all previously appropriated funds.

 

“On February 5, 2007, the Defense Department submitted a $ 94.4 billion FY2007 Supplemental request. If enacted, DOD’s total emergency funding for FY2007 would be $ 163.4 billion or 40% more than the previous year and 50% more than OMB estimated last summer. The Administration also requested about $ 3 billion for Iraq and $ 1 billion for Afghanistan in emergency foreign and diplomatic operations funds. If the FY2007 Supplemental request is approved, total war-related funding would reach about $ 607 billion including about $ 448 billion for Iraq, $ 126 billion for Afghanistan, $ 28 billion for enhanced security and $ 5 billion unallocated.

 

“For FY2008, DOD requested $ 481.4 billion for its regular or baseline budget and $ 141.7 billion for war costs. If Congress approves both the FY2007 and FY2008 war requests, total funding for Iraq and the Global War on Terror would reach about $ 752 billion, including about $ 564 billion for Iraq, $ 155 billion for Afghanistan, $ 28 billion for enhanced security, and $ 5 billion unallocated. […]”

 

February 6th, 2007 - Testimony on the FY 2008 Defense Budget Request & War Supplemental Request

Prepared statement by U.S. Secretary of Defense Robert Gates

 

“[…] The President’s FY 2008 base budget request of $481.4 billion is an increase of 11.3 percent over the projected enacted level of FY 2007, and provides the resources needed to man, organize, train, and equip the Armed Forces of the United States. This budget continues efforts to reform and transform our military establishment to be more agile, adaptive, and expeditionary to deal with a range of both conventional and irregular threats.

 

“Some military leaders have argued that while our forces can support current operations in the War on Terror, these operations are increasing risks associated with being called on to undertake a major conventional conflict elsewhere around the world. This budget provides additional resources to mitigate those risks. The FY 2008 base budget includes increases of about $16.8 billion over last year for investments in additional training, equipment repair and replacement, and intelligence and support. It provides increases in combat training rotations, sustains air crew training, and increases ship steaming days.

 

“Increase Ground Forces

 

“Despite significant improvements in the way our military is organized and operated, the ongoing conflicts in Iraq and Afghanistan have put stress on parts of our nation’s ground forces. Last month, the President called for an increase in the permanent active end strength of the Army and Marine Corps of some 92,000 troops by FY 2012. The base budget request adds $12.1 billion to increase ground forces in the next fiscal year, which will consist of 7,000 additional Soldiers and 5,000 additional Marines. Special Operations Forces, who have come to play an essential and unique role in operations against terrorist networks, will also grow by 5,575 troops between FY 2007 and FY 2008. […]”

 

February 5th, 2007 - FY 2007 Emergency Supplemental Request for the Global War on Terror

Report by the U.S. Department of Defense

 

December 18th, 2006 - DOD Action Needed to Address Problems with Management of Contractors

Report by the U.S. Government Accounting Office

 

October 28th, 2006 - Iraqi Security Forces: Weapons Provided by the U.S. Department of Defense

Report by the Special Inspector General for Iraq Reconstruction

 

September 25th, 2006 - Improvised Explosive Devises in Iraq/Afghanistan: Effects and Countermeasures

CRS Report for U.S. Congress

 

“[…] Since October 2001, Improvised Explosive Devices (IEDs, or roadside bombs) have been responsible for many of the more than 2,000 combat deaths in Iraq, and 178 combat deaths in Afghanistan. IEDs are hidden behind signs and guardrails, under roadside debris, or inside animal carcasses, and encounters with these bombs are becoming more numerous and deadly in both Iraq and Afghanistan. The threat includes vehicle-borne IEDs, in which extremists drive cars laden with explosives directly into a target. DOD efforts to counter IEDs have proven only marginally effective, and U.S. forces continue to be exposed to the threat at military checkpoints, or whenever on patrol. IEDs are increasingly being used in Afghanistan, and DOD reportedly is concerned that they might eventually be more widely used by other insurgents and terrorists worldwide. This report will be updated as events warrant. […]

 

“From 2004 to 2006, approximately $6.1 billion has reportedly been spent on U.S. efforts to defeat the threat from IEDs.27 In 2006, DOD directed the services to fund several counter-IED initiatives, including (1) the Global Anti-Terrorism and Operational Readiness Course, (2) Counter Radio Controlled IED Electronic Warfare, and (3) Robotic Systems. DOD also reportedly has plans to upgrading Navy P-3 aircraft to assist in the search for roadside bombs. Funding for this was included in a transfer of $217.8 million from a funding account for defeating IEDs, into the Navy aircraft procurement budget line. In addition, DOD has proposed spending $617 million to build new supply roads in Iraq that bypass urban centers where convoys are exposed to IEDs. […]”

 

September 22nd, 2006 - The Cost of Iraq, Afghanistan and other Global War on Terror Operations

CRS Report for Congress

 

“Through FY2006, Congress has 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. […]

 

“If the FY2007 defense appropriation bill passes, total war appropriations for all three operations would reach about $507 billion. Another $2 billion is included in other appropriations bills for foreign and diplomatic operations in Iraq and Afghanistan and VA medical costs. In its July 2006 mid-session update, the Office of Management and Budget (OMB) estimates that war funding in FY2007 will total $110 billion, including bridge funding. Based on this OMB projection, cumulative war funding for all of FY2007 would reach about $549 billion. OMB also assumes a $50 billion bridge fund for FY2008. […]”

 

September 30th, 2002 - Estimated Cost of Military Operations in Iraq

Letter by the Congressional Budget Office

 

 

Graphic Credits

 

Background

 

1) Past, present and estimated future DOD budget - February 2007 - Source unknown;

 

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