How much is the Iran war costing us?

What It Covers

Operation Epic Fury's daily costs range from $900M to $1.9B, but economists Linda Bilmes and Nita Crawford warn visible expenses represent only a fraction of total war costs spanning decades through veterans' care, debt interest, and environmental damage.

Key Questions Answered

• •Hidden munitions budgeting: The Pentagon's war costs fall outside its regular budget, requiring separate Congressional approval each time munitions are expended. This structural gap means initial cost estimates are systematically low and spending authorization lags behind actual battlefield expenditure.
• •Veterans' liability gap: Disability benefits already promised to veterans from previous conflicts total $7.3 trillion, excluding healthcare costs entirely. Any new conflict adds substantially to this multi-decade obligation, making veterans' care the single largest underestimated long-term cost of military engagement.
• •Debt-financed warfare risk: Since 9/11, the U.S. finances wars entirely through deficit spending rather than the historical mix of debt, taxes, and budget cuts. Harvard's Linda Bilmes argues this removes public accountability and shifts full financial burden onto future generations without democratic buy-in.
• •Baseline budget ratchet effect: War conditions enable presidents to secure permanent Pentagon budget increases. Trump's requested $1.5 trillion military budget, 50% above current levels, becomes easier to pass during active conflict, and once embedded in baseline spending, those increases rarely reverse.