New CBO Analysis Requested by Boyle Finds Iran War Has Already Cost Nearly $40 Billion

WASHINGTON, DC — Today, the nonpartisan Congressional Budget Office (CBO) released new findings in response to a request from Congressman Brendan F. Boyle (PA-02), Ranking Member of the House Budget Committee, showing that the war in Iran directly cost the United States nearly $40 billion through August 1, 2026 — a figure that does not include certain facilities-related costs or debt-service costs that could push the total significantly higher. CBO also found that the conflict has already increased costs for Americans and is expected to continue putting upward pressure on inflation through the first quarter of next year.

“Donald Trump’s disastrous war in Iran has already taken the lives of brave American servicemembers and left others wounded. Beyond that human toll, this nonpartisan CBO report makes clear that the war has also cost American taxpayers tens of billions of dollars and counting, while continuing to drive up costs,” said Congressman Boyle. “Donald Trump and Republicans have spent years telling Americans that we cannot afford to help families here at home, but apparently they can find tens of billions of dollars, and potentially much more, for a reckless war that is leaving Americans to pay the price.”

Among CBO’s key findings:

• The conflict is expected to continue increasing inflation. CBO projects that the war will add roughly 0.5 percentage points to inflation in the first quarter of 2027, largely because of higher energy prices stemming from disruptions in the Strait of Hormuz and the Red Sea. These higher energy costs already added an estimated 2.3 percentage points to inflation in the second quarter of 2026.
• The war directly cost the United States nearly $40 billion through August 1. That figure does not include certain facilities-related costs because of uncertainty surrounding those expenses. Most of the direct costs stem from munitions expenditures.
• The nearly $40 billion price tag is only a minimum. CBO estimates the war has continued to cost approximately $2 billion to $3 billion per month since August 1. Those costs could rise during periods of active fighting, including the intensified exchanges seen in recent weeks.
• U.S. munitions stockpiles have been significantly depleted, reducing the military’s capacity to respond to another major conflict. CBO estimates that rebuilding depleted U.S. stockpiles could take five years or longer.
• The Department of Defense declined to respond to CBO’s request for information. According to the CBO readout, DoD has traditionally provided information in response to CBO requests but has recently declined to respond to similar requests. That lack of cooperation made it more difficult for CBO to determine the full cost of the war.

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