CBO Estimates Iran Conflict Costs $2B Monthly, Highlighting Munitions Shortfalls

The ongoing conflict with Iran is estimated to cost U.S. taxpayers between $2 billion and $3 billion each month, according to a nonpartisan analysis released Tuesday by the Congressional Budget Office (CBO). The report warns that these expenses could escalate further if retaliatory exchanges of fire occur.

From the onset of hostilities on February 28 through August 1, the CBO calculated that direct costs to the United States reached approximately $38 billion. This figure excludes repairs for U.S. military bases damaged during the fighting. The majority of these expenditures were attributed to the replacement of munitions consumed in combat.

A key concern raised by the report is the depletion of interceptor missile stocks, which are critical for defending against incoming projectiles. The CBO cautioned that this inventory reduction could remain problematic for several years, particularly in the event of a future conflict with China, which possesses extensive ballistic and cruise missile arsenals relevant to a potential Taiwan standoff.

Specific replacement costs identified by the CBO total $21.7 billion. This includes $13.1 billion for missile-defense interceptors, $7.3 billion for land-attack cruise missiles, and $1.2 billion for other ammunition. Additionally, replacing lost equipment—such as a THAAD radar system destroyed by Iranian forces—is projected to cost roughly $1.9 billion. If the Pentagon opts to upgrade the lost aircraft to newer models, that price tag could rise to $3.3 billion.

Despite these findings, the White House and Pentagon have minimized alarms regarding depleted stockpiles. President Trump stated on Truth Social that the U.S. maintains “virtually unlimited amounts of mid- to high-grade ammunition.” Meanwhile, Admiral Brad Cooper, commander of U.S. forces in the Middle East, told “60 Minutes” he was unconcerned about readiness.

The Pentagon did not respond to requests for comment on the CBO’s figures. However, a separate report from the Pentagon inspector general, published the previous day, confirmed that the war has led to “strategic inventory shortfalls” and exposed bottlenecks in the industrial base for munitions resupply.

Republican lawmakers are attempting to secure up to $73 billion in new war funding through the reconciliation process, but the House-adopted budget blueprint currently faces a stalemate in the Senate. This follows an $87.6 billion supplemental request from the Trump administration in June, which included $67 billion for Department of Defense needs.

Congressman Brendan Boyle, the ranking Democrat on the House Budget Committee, requested the CBO estimate. In a statement, Boyle criticized the conflict’s financial and human toll, noting that the war has already claimed American lives and resulted in wounded servicemembers while driving up costs for taxpayers.