After evidence surfaced that Syrian President Bashar Assad’s forces used chemical weapons that allegedly killed more than 1,000 people, including women and children, President Obama has gone to Congress to authorize military action in the country. House members and Senators are considering whether to support the resolution, with a vote expected this week at the earliest.
What would intervention in Syria, even a
limited air strike, cost the United States? The non-partisan Congressional
Budget Office (CBO) basically threw up its hands on Monday, saying that because
the administration “has not detailed how it would use the authority that would
be provided” by a Congressional resolution allowing President Obama to use
military force in Syria for up to 90 days, “CBO has no basis for estimating the
costs of implementing” such a resolution.
But that doesn’t mean there is no way to
predict what it might cost.
A limited cruise missile strike: hundreds
of millions. While Secretary of Defense Chuck Hagel has estimated that an
operation would cost “tens of millions” of dollars, the price tag could be much
higher. The action the administration is talking about taking would be a
limited strike, which would likely be similar to the NATO operation in Libya in
2011, although there isn’t talk of implementing a no-fly zone as there was in
Libya, which is costly. But this sort of action could still cost hundreds of
millions in weapons. The first few weeks of the operation in Libya cost about
$600 million, $340 million of which went to munitions. Each Tomahawk Land
Attack Missile costs $1.4 million.
Meanwhile, the Navy’s USS Nimitz and other
vessels were scheduled to return home from deployment, but they have now been
ordered to remain within striking distance of the country at an estimated cost
of $25 million per week. If the U.S. fires missiles and those ships engage in
combat, it’ll cost an additional $30 million per week.
Refueling tankers would also likely be
needed, which cost $9.3 million in the Libya operation for more than 800 hours
of flight. There are also potential costs associated with safety and rescue
teams if anything goes awry.
If it escalates to troops on the ground:
billions. Although the administration has been adamant that any action will be
very limited, in July Chairman of the Joint Chiefs of Staff Gen. Martin Dempsey
warned, “Once we take action, we should be prepared for what comes next. Deeper
involvement is hard to avoid.” One path could be to train the rebels, which
would cost $500 million a year and “several thousand” troops, he estimated.
Another, a no-fly zone, would cost $1 billion a month.
If the administration ends up deciding the
end goal should be to oust Assad, the Brookings Institution has estimated that
such a move could lead to an all-out invasion, costing up to $300 billion a
year and requiring 200,000 to 300,000 troops. But so far no one has called for
anything close to this move.
Impact on the markets: potentially higher
oil prices. The increasing likelihood of military action in Syria is roiling
oil markets. But the country produces very little oil, only half a percent of
world production. As Brad Plumer at Wonkblog explains, traders are nervous not
because of the impact on Syria itself but what it might mean for the region. If
war spreads, it could impact oil-rich neighbors such as Iraq, Kuwait, Saudi
Arabia, and Qatar, plus the Turkish city of Ceyhan which is a crucial pipeline
terminal, disrupting production. These potential reductions in supply weigh
heavily on traders because there is little spare capacity. Because of all of
this, the International Energy Agency estimates that recent conflicts in Syria
and elsewhere have increased the price of oil by about $9 a barrel, which
typically means a 22 cent increase in the price of gasoline here at home. These
jitters in the oil markets may also be impacting the stock market, which have
been volatile as action is awaited.
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If the administration gets Congressional
authorization and sticks to a limited action, it probably won’t have to ask
Congress for the funds. Such a move wouldn’t require a supplemental
appropriations bill, an administration official told the Huffington Post, given
that a strike that lasted shorter than 90 days and didn’t involve combat troops
wouldn’t likely cost any more than is already appropriated. The overseas
contingency operations fund, which supports combat operations abroad and is
separate from the Department of Defense’s baseline budget, would likely be
where the money comes from, which stands at $86.5 billion in fiscal year 2013.
The Pentagon has been no stranger to budget cuts
under sequestration, and Republicans are now threatening to hold up a
continuing resolution that would keep the government funded and operational.
Yet a limited strike would still likely get funded even in the face of these
pressures.
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