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Iran war cost

CBO's September 15 letter puts the Pentagon's incremental cost of the Iran war at $38.1 billion through August 1. Another month would add $2 billion or $3 billion. PCE inflation in early 2027 is 0.5 percentage points higher than CBO's February forecast.

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Story updated September 18, 2026

CongressSeptember 15, 2026

CBO estimates the Iran war has added $38.1 billion to Defense Department costs through August 1

The estimate counts what it will take to replace the munitions fired, the extra flying hours, fuel, lost equipment, and other operations. It leaves out damaged bases, veterans' care, and other agencies. The Defense Department did not answer CBO's requests for its own numbers, and by June 30 had paid out $4.9 billion of the $7.4 billion it had committed.

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