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• Federation of American Scientists
• U.S. Department of State

Summary

Through FY2006, Congress has appropriated a total of about $437 billion for military operations, base security, reconstruction, foreign aid, embassy costs, and veterans' health care for the three operations initiated since the 9/11 attacks: Operation Enduring Freedom (OEF) covering Afghanistan and other Global War on Terror (GWOT) operations, Operation Noble Eagle (ONE) providing enhanced security at military bases, and Operation Iraqi Freedom (OIF), Iraq. In the last week of September 2006, the House and Senate are slated to consider the conference versions of the FY2007 defense appropriations bill, H.R. 5631, and the national defense authorization bill (H.R. 6122/S. 2766), both of which include an additional $70 billion for war costs. This $70 billion bridge fund is to cover war costs in the first half of the fiscal year plus $23 billion for reset -- to repair and replace war-worn equipment. The Administration is expected to submit a FY2007 supplemental for additional war costs some time next year. If the FY2007 defense appropriation bill passes, total war appropriations for all three operations would reach about $507 billion. Another $2 billion is included in other appropriations bills for foreign and diplomatic operations in Iraq and Afghanistan and VA medical costs. In its July 2006 mid-session update, the Office of Management and Budget (OMB) estimates that war funding in FY2007 will total $110 billion, including bridge funding. Based on this OMB projection, cumulative war funding for all of FY2007 would reach about $549 billion. OMB also assumes a $50 billion bridge fund for FY2008. DOD has not provided Congress with the individual costs of each operation. Based on previous spending and a rough allocation of the FY2007 bridge fund, CRS estimates that Iraq will receive about $379 billion (75%), OEF about $97 billion (20%), and enhanced base security about $26 billion (5%), with about $4 billion (1%) that CRS cannot allocate. Generally, about 91% of these funds are for DOD and about 8% are for foreign aid programs and embassy operations, with 1% for medical care for veterans and 1% are unallocated. On a monthly basis, DOD spent an average of about $6.4 billion for OIF, $1.3 billion for OEF, and $180 million for enhanced base security in FY2005. During FY2006, these monthly spending levels may increase to about $8.0 billion for OIF and $1.5 billion for OEF, an overall increase of 20%. Based on an alternate path that assumes a drawdown from about 258,000 troops currently engaged in these operations to 74,000 in FY2010, the Congressional Budget Office (CBO) estimates that war costs could total $371 billion between FY2007 and FY2016. If that CBO estimate is added to funds already appropriated, total funding for Iraq and the GWOT could reach $808 billion by 2016. DOD's annual war funding rose from about $73 billion in FY2004 to $102 billion in FY2005, $118 billion in FY2006, and is projected by OMB to drop to $110 billion in FY2007. This report will be updated as warranted.

Related Legislation:
• H.R.5631
• H.R.6122
• S.2766

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