Analysis of the Growth in Funding for Operations in Iraq, Afghanistan, and Elsewhere in the War on Terrorism (PDF; 168 KB)
Source: Congressional Budget Office

The United States began combat operations in Afghanistan in fiscal year 2002 and in Iraq in fiscal year 2003. To finance those operations (and other activities related to the war on terrorism), the Congress provided $18 billion and $76 billion in emergency appropriations in those years, respectively. With the exception of a slight decrease in 2004, to $74 billion, funding has increased steadily each year, to a total of $165 bil- lion for 2007. If the Administration’s request for 2008 is funded in full, appropria- tions for military operations and other war-related activities in Iraq, Afghanistan, and elsewhere in the war on terrorism will rise to $188 billion this year and to a cumula- tive total of $752 billion since 2001.

Most of the spending is concentrated in two categories—operation and maintenance, which has roughly doubled from 2004 to 2008, and procurement, which has increased tenfold over that period. The reasons for some of the increases are difficult to determine precisely because available data on the pace of operations and other fac- tors that might affect costs are limited and because some of the funding and reporting categories are very broad. CBO’s enclosed analysis is based on supplemental budget requests submitted by the Administration, budget justification materials provided by the Department of Defense, reports on obligations incurred during the war, and com- mittee reports accompanying appropriation acts.

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