The Congressional Budget Office (CBO) reported on Tuesday that the ongoing conflict with Iran is costing between $2 billion and $3 billion per month. The nonpartisan agency estimated that direct costs reached approximately $38 billion between February 28 and August 1. These figures do not include the costs associated with repairing damaged U.S. bases in the region.
The report follows a period of heightened military activity, including an $87.6 billion supplemental funding request sent to Congress by the Trump administration in June. That request included $67 billion for Department of Defense needs related to the war. Congressional Republicans have since sought to provide up to $73 billion in new funding through the reconciliation process, though the budget blueprint remains stalled in the Senate.
According to the CBO, the high volume of interceptor missiles used to defend against incoming fire has reduced U.S. stockpiles. The agency estimates the U.S. has probably used between one-half and two-thirds of its inventory of munitions like Patriot and THAAD interceptors since June 2025. Replacing the munitions used through August 1 is expected to cost $21.7 billion, while replacing lost equipment, such as a $500 million THAAD air defense radar, will cost at least $1.9 billion.
The scale of munitions depletion affects the long-term readiness of the U.S. military. The CBO noted that the reduced inventory could take several years to replenish. The report stated this shortfall would be problematic if a conflict arose with an opponent possessing large missile arsenals, specifically mentioning China. While President Trump and Admiral Brad Cooper have stated the U.S. remains well-armed and ready for any contingency, a separate Pentagon inspector general report stated that the conflict has revealed "industrial base bottlenecks" for munitions resupply.
What happens next depends on congressional action regarding funding and the intensity of the combat. If the war continues at its current intensity, the $2 billion to $3 billion monthly cost will persist; however, another escalation like the one seen in July could drive monthly spending to $3 billion or higher. Legislatively, the $73 billion funding package remains stalled in the Senate. Additionally, if the Pentagon chooses to replace lost aircraft with newer models rather than exact replicas, the estimated cost for equipment replacement could rise from $1.9 billion to $3.3 billion.