ICYMI: CBO Director Confirms The Cost of Trump’s War in Iran Could Cover Health Care for Millions of Americans

ICYMI: CBO Director Confirms The Cost of Trump's War in Iran Could Cover Health Care for Millions of Americans

Video of Exchange (YouTube)

Washington, D.C. - At a hearing of the Senate Finance Subcommittee on Fiscal Responsibility and Economic Growth, U.S. Senator Elizabeth Warren (D-Mass.) questioned the Director of the Congressional Budget Office (CBO) on the financial implications of the Iran war.

On February 28, the United States and Israel attacked Iran, with President Trump calling for the overthrow of the Iranian government. President Trump initially stated that Iran operations would last "four weeks or less." But subsequent briefings and statements have made it unclear just how long this war will last.

According to the Center for Strategic and International Studies, the cost of just the first 100 hours of the U.S.'s attack in Iran is estimated to be $3.7 billion, or $889 million a day. Other experts estimate that war with Iran is costing $1 billion a day, with some Republicans hearing that the war is costing $2 billion a day. The Pentagon is reportedly planning to ask Congress for an additional $50 billion to fund the war with Iran, on top of a $1.5 trillion budget request.

Phillip L. Swagel, Director of the Congressional Budget Office, confirmed to the Senator the estimated cost of extending Affordable Care Act (ACA) subsidies for one year would be $30 billion. Compared to the Trump administration's $50 billion estimate for the Iran war, the U.S. could fund the ACA credits and still have $20 billion left. If the Iran war cost $1 billion per day, it would exhaust the $30 billion that could have been used to fund Americans' healthcare in one month.

"This war is costing American lives and a lot of money. Money that could instead be spent lowering costs like health care," said the Senator.

Senator Warren concluded the hearing by emphasizing the financial waste of the ongoing conflict and the potential for significant cost savings by ending the bombing of Iran.

Transcript: Hearings to examine the fiscal outlook, 2027-2036.
Senate Finance Subcommittee on Fiscal Responsibility and Economic Growth
March 11, 2026

Senator Elizabeth Warren: Thank you, Mr. Chairman. So, back in 2002, the Bush White House said that the war in Iraq would be, quote, "a cakewalk," and estimated that its cost would be about $50 billion. Well, it wasn't a cakewalk. And what did it cost? About $756 billion. And that doesn't even count the long-term costs of war, like caring for our injured service members and veterans.

Dr. Swagel, you are the director of the Congressional Budget Office, and Congress relies on your office to help us understand the financial costs of the policy decisions that we make. But CBO is in a difficult position of forecasting when there's a rapidly spiraling war of choice.

Dr. Swagel, President Trump plans to ask Congress for an extra $50 billion to fund his war with Iran. Can you definitively say that the war with Iran will cost only $50 billion?

Dr. Swagel: No, I can't, and we don't know the duration or the scope. We will find out as much information as we can, but we can't say that right now.

Senator Warren: Yeah, interesting that it would be the same number that the Bush administration picked, only to have it turn out to be more than $750 billion. Now, this war is costing American lives and a lot of money. Money that could instead be spent lowering costs like health care.

Dr. Swagel, based on the CBO's previous estimates, how much would it cost to extend the ACA's enhanced premium tax credits for just one year?

Dr. Swagel: For one year, our last estimate was around $30 billion.

Senator Warren: $30 billion. So, let's do a little math here. The Trump administration says this war will cost $50 billion. That means that we could help all of the people who are getting pushed off of their health care or whose health care costs are rising enormously and still have an additional $20 billion left over. Is my math right on that?

Dr. Swagel: That math is correct, yes.

Senator Warren: That math is correct. Okay, now some estimates say that Trump's war with Iran costs roughly a billion dollars a day. If that is right, how long until we've blown through the money that we could have spent to support the ACA's enhanced premium credits this year?

Mr. Swagel: The math, again, is 30 days.

Senator Warren: One month.

Mr. Swagel: Yep. I was going to say the $1 billion figure I've seen also, we just, we don't have that, but it's a figure I've seen as well.

Senator Warren: That's right, and one that the administration has certainly not walked away from, have they?

Mr. Swagel: I haven't seen that, no.

Senator Warren: Look, all of us want to make sure that our troops have whatever they need to be safe. But we know right now that the Department of Defense is swimming in money, and we also know that there is no guarantee that Trump will end his illegal war any time soon or that he won't be coming back for more money over and over for this. You know, it seems to me that when we're talking about money here, that the way that we can save the most money would be to stop bombing Iran now, and just as a side benefit, we could also save a lot of lives. Thank you.

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