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August 30, 2006

COST OF IRAQ REPORTA special report from MoveOn.org Political Action

Data from the National Priorities Project

Nearly four years after Congress voted to authorize the Iraq war, it is time for President BushsRepublican allies in Congress to recognize the impact of the continuing occupation of Iraq onAmerican taxpayersand its impact on this nations priorities. We need a new directionnotmore of the same.

At the same time billions has been spent in Iraq, Congress has short-changed important priorities.They under-funded No Child Left Behind and left a giant hole in funding for prescription drugsfor seniors through Medicare. Student loan funding was cut and investments in homeland

security have been short-changed. We havent even provided our troops the equipment they needlike modern body armor and helmets. Veterans returning from Iraq face higher costs for theirhealth care.

All of this points to a Congress whose fiscal priorities are focused thousands of miles away inIraqrather than back here in America. This report, using data provided by the NationalPriorities Project, details the cost of the war to every congressional district in America andreminds us what we were told, the realities of what happened and what lies ahead.

Total Cost of the War $300 billion and counting

$10 billion a month

$2 billion a week

$267 million a day

$11 million an hour

REMEMBER WHAT THEY TOLD US ABOUT THE COST

The Bush Administration Misled the American Taxpayers:

Secretary of Defense Donald Rumsfeld: It could last six days, six weeks . Idoubt sixmonths. [February 7, 2003]


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Cost of Iraq Report August 30, 2006

OMB Director Mitch Daniels: The administrations top budget [Mitch Daniels] officialestimated today thatthe cost of a war with Iraq could be in the range of $50 billion to $60

billion [New York Times, 12/31/02]

In late 2002, months before the Iraq war started, the Bush administration rebuked its ownchief economic adviser, Lawrence Lindsey, for publicly estimating that a war in Iraqmight cost $100 billion to $200 billion. [San Francisco Chronicle, 5/9/04]

A LOOK AT THE NUMBERS SHOWS A TOTALLY DIFFERENT RESULT

Where We Are:

With the passage of the FY 2006 supplemental appropriations bill, Congress has so farappropriated about $319 billion for the war in Iraq. [Congressional Research Service,6/14/06]

A Congressional Budget Office analysis concluded that since 2003, $291 billion has been

spent on the war in Iraq. [National Journals Congress Daily, 7/14/06]

The Iraq operation has already cost far more than the 1991 Persian Gulf War which costabout $89 billion in FY 2007 dollars. It is quite possible that the United States willultimately spend more on U.S. military operations in Iraq and Afghanistan than it did onthe Korean War - $455 billion - or the Vietnam War - $650 billion. [Center for Strategicand Budgetary Assessments, 3/20/06]

What Lies Ahead:

An analysis by the Congressional Budget Office predicted that if the United States keepsforces in Iraq through the end of 2009, an additional $166 billion in Department ofDefense funding would be necessary over the FY 2007-16 period. CBO predicted that ifthe United States reduces its deployed forces in Iraq to 40,000 after 2010 and keeps it atthat level through 2016, an additional $368 billion in Department of Defense fundingwould be necessary over the FY 2007-16 period. [Congressional Budget Office, 7/13/06]

Columbia University economist Joseph E. Stiglitz and Harvard lecturer Linda Bilmespredicted the cost of the Iraq war could top $2 trillion assuming the U.S. mission in Iraqlasts until 2010, with a steadily declining number of U.S. troops each year - afterfactoring in long-term healthcare for wounded U.S. veterans, rebuilding a worn-downmilitary and accounting for other unforeseen bills and economic losses The figure is


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assistance would still need to be provided. [Center for Strategic and BudgetaryAssessments, 2/27/06]

According to a 2005 report by the Office of the Special Inspector Generalfor Iraq Reconstruction (SIGIR), a survey of about 100 reconstruction projectsindicated that actual costs have typically exceeded initial estimates by some20-85 percent. The SIGIR data suggest that at least $60 billion would be needed tocomplete the reconstruction projects outlined in 2003. In 2006, the Special InspectorGeneral for Iraq Reconstruction warned that the United States faces a reconstructiongapthe difference between what was originally planned for reconstruction in the

various sectors and what actually will be delivered. [SIGIR Report to Congress, 4/30/05;SIGIR Quarterly Report, 1/30/06]

WHERE HAS THE MONEY GONE?

Empty Promises of Reconstruction Efforts:

About 30 billion of taxpayer dollars and 20 billion in Iraqi funds have been spent so farby the Bush Administration to rebuild Iraq. However, today, services in Iraq oilproduction, electricity and drinkable water remain at pre-war levels. [Dollars NotSense, Government Contracting Under the Bush Administration, U.S. House ofRepresentatives Committee on Government Reform, Minority Staff, SpecialInvestigations Division Report, 6/06]

Billions of Dollars to Contractors Who Have Not Been Held Accountable:

Since 2001, Halliburton has been paid more than $10 billion for its work in providing themilitary with support operations. [St. Petersburg Times, 7/16/06]

There have been three contracts awarded to Halliburton/KBR - totaling more than $18.4billion - since the beginning of the war in Iraq - - two of which were no-bid contracts.The first no-bid contract was for supplies for U.S. troops. The second no-bid contract

was for fuel and oil industry repairs. The third contract, awarded in January 2004 after acompetitive bidding process, was for the repair of oil fields in Southern Iraq. [LosAngeles Times, 3/29/06; Dollars Not Sense, Government Contracting Under the BushAdministration, U.S. House of Representatives Committee on Government Reform,Minority Staff, Special Investigations Division Report, 6/06]


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United Nations' former oil-for-food program, oil sales and seized assets. Auditors wereunable to verify that the Iraqi money was spent for its intended purpose. In one case, they

raised the possibility that thousands of "ghost employees" were on an unnamed ministry'spayroll. [CNN.com, 1/31/05]

MISPLACED PRIORITIES: WHAT THE MONEY HASNT BEEN SPENT ON

What We Could Have Paid for Instead:

More than 40 million children to attend a year of Head Start [National Priorities Project,8/06]

Health insurance for more than 185 million children for one year [National PrioritiesProject, 8/06]

Four-year scholarships at public universities for nearly 15 million students [National

Priorities Project, 8/06]

Hiring more than 5 million additional public school teachers for one year [NationalPriorities Project, 8/06]

Clean up all contaminated sites in the U.SEPA estimates approximately 350,000 overthe next 30 years. [Minority Appropriations Committee Staff, 7/06]

Or, Use Only Some of What Has Been Spent for Homeland Security

Equip commercial airliners with defenses against shoulder fired missile--$10 billion orapproximately 5 weeks in Iraq. [Minority Appropriations Committee Staff, 7/06]

International aid needed to rebuild Afghanistan--$8.6 billion or approximately one monthin Iraq. [Minority Appropriations Committee Staff, 7/06]

Capital improvements to secure public transportation (trains, subways, buses) againstterrorist attacks--$5.2 billion or approximately 3 weeks in Iraq. [Minority AppropriationsCommittee Staff, 7/06]

Radiation detectors needed at all U.S. ports to scan 100% of cargo (rejected due to cost)--$1 5 billion or 5 days in Iraq [Minority Appropriations Committee Staff 7/06]


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Or, start to take care of our returning veterans

Eliminate new costly co-pays and premiums forced on veterans--$2.5 billion or 9 days inIraq. [Minority Appropriations Committee Staff, 7/06]

Fully fund mental health research for veterans--$100 million or 9 hours in Iraq. [MinorityAppropriations Committee Staff, 7/06]

Medical and prosthetic research for veterans--$48 million or less than 5 hours in Iraq.[Minority Appropriations Committee Staff, 7/06]

Data Sources

Unless otherwise indicated, the figures provided for the cost of the war for each district andspecific tradeoffs are all from the National Priorities Project on the web atwww.nationalpriorities.org.

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Attachment:Chart of the cost of the war by district with tradeoffs. The trade-offs listed representeach congressional district's share of the cost that could be used to fund other priorities facing theentire country. For example, we indicate how the money each district spent on the war could beused to provide health care for children across the entire country.


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