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URLhttps://www.cbsnews.com/news/afghanistan-iraq-wars-debt-6-trillion-interest/
Last Crawled2026-04-16 00:33:11 (2 days ago)
First Indexed2021-08-18 16:57:59 (4 years ago)
HTTP Status Code200
Meta TitleAmericans could owe $6.5 trillion for wars in Afghanistan and Iraq — and that's just the interest - CBS News
Meta DescriptionIn a departure from previous conflicts, the U.S. funded its recent wars in the Middle East through massive borrowing.
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Updated on: August 18, 2021 / 2:29 PM EDT / MoneyWatch Add CBS News on Google Although the U.S. is trying to turn the page on two decades of war in the Middle East, American taxpayers can expect to pay for those conflicts for decades to come.  The ultimate cost of the nation's engagements in Afghanistan and Iraq, on top of the incalculable personal toll on combatants and civilians, reflects a shift in how war has typically been financed. From the American Civil War through the Korean War, the U.S. government has mostly paid for its conflicts through taxes and war bonds. But in the post-September 11 era, U.S. military spending has been financed almost entirely through debt. Since the September 11 attacks, the U.S. government has spent $2.2 trillion to finance the wars in Afghanistan and Iraq, according to  figures  from Brown University's Costs of War Project. Yet that sum — which amounts to roughly 10% of the the country's total gross domestic product — only reflects upfront costs.  Including the cost of interest on those wars will add an additional $2.1 trillion by 2030. And through 2050, the interest alone is forecast to top $6.5 trillion — even if war spending had theoretically stopped in 2019, according to research  published  last year from Heidi Peltier, director of the "20 Years of War" Project at Boston University's Pardee Center for the Study of the Longer-Range Future. Such borrowing leads to larger total costs because interest must be paid as long as the debt is owed. That pushes the "true cost of war out to future generations," Peltier told CBS MoneyWatch.  "What that does is shield the American public from the costs currently," she said. "So, Americans don't realize that they're paying for the cost, because their taxes are not increased. And they're not buying more [war] bonds, they're not in any way feeling the [financial] effects currently." Tax hikes in previous wars   Previous wars were largely paid for by taxes. For example, President Harry Truman temporarily raised the top tax rate on the richest Americans to 92% to help pay for the Korean War. And President Lyndon Johnson temporarily raised the top rate to 77% to fund the Vietnam War. At the outset of the wars in Afghanistan and Iraq under President George W. Bush, however, Congress cut taxes by roughly 8% for the wealthiest Americans. Since then, war costs haven't been included in the regular defense budget, experts have noted.  "In every previous major war, the war budget was integrated into the regular defense budget after the initial period. This meant that Congress and the Pentagon had to make trade-offs within the defense budget," Linda Bilmes, a lecturer in public policy and finance at Harvard's Kennedy School told  Congress in 2017. "By contrast, the post-9/11 wars have been funded mostly by supplemental appropriations." That additional funding approved by Congress to pay for U.S. wars over the last two decades is exempt from spending caps and doesn't require cuts elsewhere in the budget to offset them, Bilmes noted. Veterans react to fall of Afghanistan to Taliban 03:06 Another hidden cost: military personnel. The U.S. has committed to pay the health care, disability, burial and other costs for about 4 million Afghanistan and Iraq war veterans, which are projected to amount to more than $2 trillion. Those costs will peak after 2048 , according to the Associated Press. Overall, the U.S.' net interest costs —  payments the federal government sends to investors and public debt holders minus interest it collects — are rising. That includes the interest on borrowing to fund the wars in Afghanistan and Iraq. Net interest is projected to widen to 2.7% of GDP in 2031, up from 1.3% in 2024, according to a July report  by the nonpartisan Congressional Budget Office. The Associated Press contributed to this report.
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The ultimate cost of the nation's engagements in Afghanistan and Iraq, on top of the incalculable personal toll on combatants and civilians, reflects a shift in how war has typically been financed. From the American Civil War through the Korean War, the U.S. government has mostly paid for its conflicts through taxes and war bonds. But in the post-September 11 era, U.S. military spending has been financed almost entirely through debt. Since the September 11 attacks, the U.S. government has spent \$2.2 trillion to finance the wars in Afghanistan and Iraq, according to [figures](https://watson.brown.edu/costsofwar/files/cow/imce/papers/2020/Peltier%202020%20-%20The%20Cost%20of%20Debt-financed%20War.pdf) from Brown University's Costs of War Project. Yet that sum — which amounts to roughly 10% of the the country's total gross domestic product — only reflects upfront costs. Including the cost of interest on those wars will add an additional \$2.1 trillion by 2030. And through 2050, the interest alone is forecast to top \$6.5 trillion — even if war spending had theoretically stopped in 2019, according to research [published](https://watson.brown.edu/costsofwar/files/cow/imce/papers/2020/Peltier%202020%20-%20The%20Cost%20of%20Debt-financed%20War.pdf) last year from Heidi Peltier, director of the "20 Years of War" Project at Boston University's Pardee Center for the Study of the Longer-Range Future. Such borrowing leads to larger total costs because interest must be paid as long as the debt is owed. That pushes the "true cost of war out to future generations," Peltier told CBS MoneyWatch. "What that does is shield the American public from the costs currently," she said. "So, Americans don't realize that they're paying for the cost, because their taxes are not increased. And they're not buying more \[war\] bonds, they're not in any way feeling the \[financial\] effects currently." ## Tax hikes in previous wars Previous wars were largely paid for by taxes. For example, President Harry Truman temporarily raised the top tax rate on the richest Americans to 92% to help pay for the Korean War. And President Lyndon Johnson temporarily raised the top rate to 77% to fund the Vietnam War. At the outset of the wars in Afghanistan and Iraq under President George W. Bush, however, Congress cut taxes by roughly 8% for the wealthiest Americans. Since then, war costs haven't been included in the regular defense budget, experts have noted. "In every previous major war, the war budget was integrated into the regular defense budget after the initial period. This meant that Congress and the Pentagon had to make trade-offs within the defense budget," Linda Bilmes, a lecturer in public policy and finance at Harvard's Kennedy School [told](https://watson.brown.edu/costsofwar/files/cow/imce/papers/2017/Linda%20J%20Bilmes%20_Credit%20Card%20Wars%20FINAL.pdf) Congress in 2017. "By contrast, the post-9/11 wars have been funded mostly by supplemental appropriations." That additional funding approved by Congress to pay for U.S. wars over the last two decades is exempt from spending caps and doesn't require cuts elsewhere in the budget to offset them, Bilmes noted. [Veterans react to fall of Afghanistan to Taliban 03:06](https://www.cbsnews.com/video/veterans-react-to-fall-of-afghanistan-to-taliban/) Another hidden cost: military personnel. The U.S. has committed to pay the health care, disability, burial and other costs for about 4 million Afghanistan and Iraq war veterans, which are projected to amount to more than \$2 trillion. Those costs will peak after [2048](https://apnews.com/article/middle-east-business-afghanistan-43d8f53b35e80ec18c130cd683e1a38f), according to the Associated Press. Overall, the U.S.' net interest costs — [payments](https://www.cbo.gov/publication/56910) the federal government sends to investors and public debt holders minus interest it collects — are rising. That includes the interest on borrowing to fund the wars in Afghanistan and Iraq. Net interest is projected to widen to 2.7% of GDP in 2031, up from 1.3% in 2024, according to a July [report](https://www.cbo.gov/publication/57263) by the nonpartisan Congressional Budget Office. *The Associated Press contributed to this report.* ### Afghanistan: The New Reality [More](https://www.cbsnews.com/feature/afghanistan-the-way-forward/?intcid=CNI-00-10aaa3a) - [U.S. designates Afghanistan as a state sponsor of wrongful detention ![AFGHANISTAN-PRISON-SECURITY ](https://assets2.cbsnewsstatic.com/hub/i/r/2026/03/09/b8d51625-c7d7-4743-b604-35917340a063/thumbnail/96x96/b6989f7c2235297d605b5f3197dea29d/gettyimages-1246812285.jpg)](https://www.cbsnews.com/news/trump-designates-afghanistan-state-sponsor-wrongful-detention/?intcid=CNI-00-10aaa3a) - [Pakistan declares "open war" with Afghanistan as airstrikes rock Kabul ![AFGHANISTAN-PAKISTAN-CONFLICT ](https://assets2.cbsnewsstatic.com/hub/i/r/2026/02/27/79c82f8a-1f58-4019-868a-232e8f13d473/thumbnail/96x96/af386bc3d3dd9e8476c6f761cbbdf07f/gettyimages-2262420751.jpg)](https://www.cbsnews.com/news/pakistan-says-it-is-in-open-war-with-afghanistan-launches-strikes-on-kabul/?intcid=CNI-00-10aaa3a) - [Trump outrages NATO allies with remarks on war in Afghanistan ![Armistice Day ](https://assets2.cbsnewsstatic.com/hub/i/r/2026/01/23/92047b9a-05a9-4732-8d7b-d01dd04e850f/thumbnail/96x96/364b43623c7259125a3f6f92d5f6062f/william-aldridge-uk-afghanistan-839205956.jpg)](https://www.cbsnews.com/news/trump-nato-allies-disgusted-and-outraged-over-remarks-afghanistan-war/?intcid=CNI-00-10aaa3a) - [Taliban detains 4 men for dressing up as "Peaky Blinders" characters ![afghanistan-taliban-peaky-blinders.jpg ](https://assets1.cbsnewsstatic.com/hub/i/r/2025/12/09/0615a85a-4bbf-4bfe-98c0-dff3ee32905b/thumbnail/96x96/789105beb73beca4f24a1ce99136b554/afghanistan-taliban-peaky-blinders.jpg)](https://www.cbsnews.com/news/taliban-detains-men-peaky-blinders-style-for-rehabilitation-sharia-law/?intcid=CNI-00-10aaa3a) - [Afghan rulers vow response after Pakistani strikes kill 10 near border ![AFGHANISTAN-PAKISTAN-CONFLICT ](https://assets1.cbsnewsstatic.com/hub/i/r/2025/11/25/93fd7088-735f-4098-990e-11d1c6129883/thumbnail/96x96/a0362e28d21128d60438a28bb106f98f/afghanistan-pakistan-2247813631.jpg)](https://www.cbsnews.com/news/afghanistan-pakistan-violence-taliban-ttp/?intcid=CNI-00-10aaa3a) ### Go deeper with The Free Press - [Trump’s \$1.5 Trillion Defense Budget Is a Political Gamble ![ ](https://substackcdn.com/image/fetch/%24s_!W1IQ!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F0fe7b754-d358-40c6-9545-4fad2e403368_1024x683.jpeg)](https://www.thefp.com/p/trumps-15-trillion-defense-budget-is-a-political-gamble?utm_source=cbs_news&utm_campaign=cbs_news_recirculation&utm_content=bottom_page) - [This Week in American History: Washington’s Civil War ![ ](https://substackcdn.com/image/fetch/%24s_!_wvG!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F61bb3b37-898f-417f-9ebb-cf6a0775795c_1024x756.jpeg)](https://www.thefp.com/p/this-week-in-american-history-washingtons?utm_source=cbs_news&utm_campaign=cbs_news_recirculation&utm_content=bottom_page) © 2021 CBS Interactive Inc. All Rights Reserved. The cost of the 20-year war in Afghanistan [The cost of the 20-year war in Afghanistan 07:46](https://www.cbsnews.com/video/how-much-has-the-20-year-long-war-in-afghanistan-cost/) #### The cost of the 20-year war in Afghanistan (07:46) - [\$25,000 CD vs. \$25,000 high-yield savings vs. \$25,000 money market account: Which earns the most in 2026? ![ ](https://assets2.cbsnewsstatic.com/hub/i/r/2026/04/15/efa68314-1b56-4d30-a3c9-7837e04ff447/thumbnail/1200x630/6506b548b5ffeb420b6b93935e0fe3d6/gettyimages-2184469172.jpg)](https://www.cbsnews.com/news/25000-cd-high-yield-savings-money-market-account-earns-most-2026/?intcid=CNR-01-0623) - [What are today's mortgage interest rates: April 13, 2026? ![ ](https://assets3.cbsnewsstatic.com/hub/i/r/2026/04/13/9765c4d7-60a2-4e56-8469-4736e552d125/thumbnail/1200x630/bc7a4613bd3a4b78ac9b6cb86930a615/gettyimages-1559978026.jpg)](https://www.cbsnews.com/news/mortgage-interest-rates-april-13-2026/?intcid=CNR-01-0623) - [UCLA survey finds LA County residents dissatisfied with quality of life, affordability is a top concern ![ ](https://assets1.cbsnewsstatic.com/hub/i/r/2026/04/15/2fdb2ee7-4c2c-4b18-9d84-8596965f77d3/thumbnail/1200x630/41ba0e0e93ca458df32ad198bfe1c53f/gettyimages-2271212194.jpg)](https://www.cbsnews.com/losangeles/news/ucla-survey-la-county-residents-dissatisfied-quality-of-life-affordability/?intcid=CNR-01-0623) - [Trump’s \$1.5 Trillion Defense Budget Is a Political Gamble ![ ](https://substackcdn.com/image/fetch/%24s_!W1IQ!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F0fe7b754-d358-40c6-9545-4fad2e403368_1024x683.jpeg)](https://www.thefp.com/p/trumps-15-trillion-defense-budget-is-a-political-gamble?utm_source=cbs_news&utm_campaign=cbs_news_recirculation&utm_content=right_rail) Featured [Iran War Coverage](https://www.cbsnews.com/us-iran-tensions/) [Artemis II Splashdown](https://www.cbsnews.com/live-updates/artemis-ii-splashdown-return/) [Masters Purse](https://www.cbssports.com/golf/news/masters-2026-prize-money-purse-payouts-winnings-augusta-national/) [NBA Playoff Bracket](https://www.cbssports.com/nba/news/2026-nba-playoff-bracket-matchups-schedule/) Follow Us On [YouTube](https://www.youtube.com/CBSNews/) [Facebook](https://www.facebook.com/CBSNews/) [Instagram](https://instagram.com/cbsnews/) [X](https://x.com/CBSNews/) Privacy [Privacy Policy](https://www.viacomcbsprivacy.com/policy) [California Notice](https://privacy.paramount.com/en/policy#additional-information-us-states) [Your Privacy Choices](https://www.cbsnews.com/news/afghanistan-iraq-wars-debt-6-trillion-interest/#onetrust-pc-sdk) [Terms of Use](https://legal.paramount.com/us/en/cbsi/terms-of-use) [Minors' Privacy Policy](https://privacy.paramount.com/childrens) More from CBS News [Newsletters](https://www.cbsnews.com/newsletters/) [Podcasts](https://www.cbsnews.com/podcasts/) [Download Our App](https://www.cbsnews.com/app/) [Brand Studio](https://www.cbsnews.com/brandstudio/) [Sitemap](https://www.cbsnews.com/sitemap/) Company [About Paramount](https://www.paramount.com/about/) [Advertise With Paramount](https://www.paramount.com/about/businesses/advertising) [Join Our Talent Community](https://pages.beamery.com/paramount/page/cbsnewsstations) [Help](https://help.cbsnews.com/s/) [Feedback](https://www.cbs.com/showfeedback/) [Contact the Ombudsman](https://ombudsman.cbsnews.com/) Copyright ©2026 CBS Interactive Inc. 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Updated on: August 18, 2021 / 2:29 PM EDT / MoneyWatch [Add CBS News on Google](https://www.google.com/preferences/source?q=cbsnews.com) Although the U.S. is trying to turn the page on two decades of war in the Middle East, American taxpayers can expect to pay for those conflicts for decades to come. The ultimate cost of the nation's engagements in Afghanistan and Iraq, on top of the incalculable personal toll on combatants and civilians, reflects a shift in how war has typically been financed. From the American Civil War through the Korean War, the U.S. government has mostly paid for its conflicts through taxes and war bonds. But in the post-September 11 era, U.S. military spending has been financed almost entirely through debt. Since the September 11 attacks, the U.S. government has spent \$2.2 trillion to finance the wars in Afghanistan and Iraq, according to [figures](https://watson.brown.edu/costsofwar/files/cow/imce/papers/2020/Peltier%202020%20-%20The%20Cost%20of%20Debt-financed%20War.pdf) from Brown University's Costs of War Project. Yet that sum — which amounts to roughly 10% of the the country's total gross domestic product — only reflects upfront costs. Including the cost of interest on those wars will add an additional \$2.1 trillion by 2030. And through 2050, the interest alone is forecast to top \$6.5 trillion — even if war spending had theoretically stopped in 2019, according to research [published](https://watson.brown.edu/costsofwar/files/cow/imce/papers/2020/Peltier%202020%20-%20The%20Cost%20of%20Debt-financed%20War.pdf) last year from Heidi Peltier, director of the "20 Years of War" Project at Boston University's Pardee Center for the Study of the Longer-Range Future. Such borrowing leads to larger total costs because interest must be paid as long as the debt is owed. That pushes the "true cost of war out to future generations," Peltier told CBS MoneyWatch. "What that does is shield the American public from the costs currently," she said. "So, Americans don't realize that they're paying for the cost, because their taxes are not increased. And they're not buying more \[war\] bonds, they're not in any way feeling the \[financial\] effects currently." ## Tax hikes in previous wars Previous wars were largely paid for by taxes. For example, President Harry Truman temporarily raised the top tax rate on the richest Americans to 92% to help pay for the Korean War. And President Lyndon Johnson temporarily raised the top rate to 77% to fund the Vietnam War. At the outset of the wars in Afghanistan and Iraq under President George W. Bush, however, Congress cut taxes by roughly 8% for the wealthiest Americans. Since then, war costs haven't been included in the regular defense budget, experts have noted. "In every previous major war, the war budget was integrated into the regular defense budget after the initial period. This meant that Congress and the Pentagon had to make trade-offs within the defense budget," Linda Bilmes, a lecturer in public policy and finance at Harvard's Kennedy School [told](https://watson.brown.edu/costsofwar/files/cow/imce/papers/2017/Linda%20J%20Bilmes%20_Credit%20Card%20Wars%20FINAL.pdf) Congress in 2017. "By contrast, the post-9/11 wars have been funded mostly by supplemental appropriations." That additional funding approved by Congress to pay for U.S. wars over the last two decades is exempt from spending caps and doesn't require cuts elsewhere in the budget to offset them, Bilmes noted. [Veterans react to fall of Afghanistan to Taliban 03:06](https://www.cbsnews.com/video/veterans-react-to-fall-of-afghanistan-to-taliban/) Another hidden cost: military personnel. The U.S. has committed to pay the health care, disability, burial and other costs for about 4 million Afghanistan and Iraq war veterans, which are projected to amount to more than \$2 trillion. Those costs will peak after [2048](https://apnews.com/article/middle-east-business-afghanistan-43d8f53b35e80ec18c130cd683e1a38f), according to the Associated Press. Overall, the U.S.' net interest costs — [payments](https://www.cbo.gov/publication/56910) the federal government sends to investors and public debt holders minus interest it collects — are rising. That includes the interest on borrowing to fund the wars in Afghanistan and Iraq. Net interest is projected to widen to 2.7% of GDP in 2031, up from 1.3% in 2024, according to a July [report](https://www.cbo.gov/publication/57263) by the nonpartisan Congressional Budget Office. *The Associated Press contributed to this report.*
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