The Cost of a Surge

January 4, 2007 Topic: Economics Region: Persian GulfMiddle East Tags: Iraq War

The Cost of a Surge

Due to Bush’s “emergency requests”, it is virtually impossible for the nation to track Iraq spending. The decision to “surge” forces this winter would only exacerbate the problem.

The president is widely expected to soon announce a plan for Iraq that hinges on sending more U.S. military forces to Iraq, above and beyond the 140,000 currently in that country. And while there has been some bipartisan cheerleading for such a prospect, there has been less discussion of where the troops for this famous surge would come from, what it would cost, or how it would further unravel a national-security, budget-planning process that has served the nation well since the Second World War.

Budgeting for Iraq and the so-called Global War on Terror (or GWOT), is already out of control. In large part because of its "emergency" status, the nation, and even Congress, does not know what the funding for this war covers or how it has been spent. It is virtually impossible for Congress or the American people to track Iraq spending.

The Bush Administration has demonstrated that it vastly prefers to fund Iraq as an "emergency", allowing it to sidestep the kind of detailed justification and reporting that Congress seeks in the regular budget process and has started to request on Iraq. A decision to "surge" forces this winter would only exacerbate the problem, since it will be coming long after the Pentagon has already put the next "emergency" budget request together.

Demands and Recommendations Rebuffed

The December 2006 Iraq Study Group report urged the administration to return to normal budget procedures: "costs for the war in Iraq should be included in the president's annual budget request starting in 2008."  The White House has made no response.


Later in December Congress again urged this change. In a letter, Senate Budget Committee Chair Senator Kent Conrad (D-ND) and his House counterpart Representative John Spratt (D-SC), along with Senator Judd Gregg (R-NH), asked the president to "include in [his] budget the best possible projection of war costs beyond 2008, and to specify war costs with the same level of detail as items in the regular budget." 

There is no indication the president, or the Pentagon, will agree to this request, which will in all likelihood lead to a continuation of the dance we have grown familiar with: forces go into Iraq; they are not budgeted in advance; an "emergency" budget is put together to cover them and shipped to the Congress on a "fast track", leading to little scrutiny and yet more funding.

The opacity of Iraq and GWOT spending has increasingly been the focus of concern. Last year, Congress, led by Senators John McCain (R-AZ) and Gregg, asked the Pentagon to change its budget practices and submit Iraq budget requests as part of the regular defense budget, providing equally detailed justification for the funding. The White House chose to interpret this legislation as inconsistent with the president's constitutional authority. 

According to the Congressional Research Service, the United States has committed more than $507 billion to these struggles, three quarters of it for operations in Iraq, 91 percent of it for the Pentagon and over 90 percent as "emergency" funding. In all likelihood, the White House in February will request another $100 billion in emergency funding, as well as a roughly $50 billion down payment for the same "emergency" in the next fiscal year. 

If Congress approves all of these requests, the GWOT will be at least as costly as any other war in American history, save World War II, when more than 12 million at a time served in the U.S. military. Moreover, the Congressional Budget Office estimates, very conservatively, that the United States could spend another $320 billion over the next nine years in Iraq alone, putting the total war costs over $1 trillion.

If U.S. deployments do not decline, these costs could rise significantly. The annual trajectory for GWOT spending is ever upwards, from $31.4 billion in 2001-02 to a possible $170 billion for 2007 alone. To tether these astronomical figures closer to the ground, this fiscal year we are likely to spend $14 billion a month on the GWOT, or $3.3 billion a week. Put another way, emergency money for the GWOT will consist of roughly a quarter of all the funds the Pentagon will receive for the current fiscal year.

Transparency, Interrupted

There are serious issues of good government, accountable budgeting and spending control buried in this pile of dollars. When the budgets for Iraq and GWOT are put together in the Pentagon, they consist of "lump sums" for categories of spending, not detailed budgets for specific programs or requirements. For example, the Army discloses what it is requesting for "operations and maintenance", but does not detail the funding for specific provisions, supplies, spares, or logistics. Nor does the Pentagon distinguish between the uses of these emergency funds and the regular budget funds for non-Iraq activities. Congress has been asked to take on faith that all of these funds are needed, that they are all dedicated to Iraq and the GWOT, and that other regular budget funds are not being siphoned into the war.