WASHINGTON, D.C. — The price of war is rising and Americans could feel the impact even more at the pump and in their wallets, according to a new Congressional Budget Office (CBO) report this week.
The report, requested by Democrats, comes as tensions over the conflict boil over on Capitol Hill. On Wednesday, House leaders decided to cut the week short and head home to campaign for November.
The new CBO report estimates the first five months of the conflict have cost the U.S. about $38 billion. The estimate does not include damage to U.S. military facilities in the region.
Of the $38 billion estimate, $21 billion is going toward replacing munitions. The bill could keep growing, with the war expected to cost another $2 billion to $3 billion every month, and more during periods of escalated fighting.
The economic impact is expected to continue hitting American households.
“Gas prices are always an issue for voters,” said Senate Majority Leader John Thune, R-S.D.
AAA says gas prices have risen nearly 30 cents over the past month.
“Obviously what’s happening in the Strait of Hormuz is having some impact there,” said Leader Thune. “But I also think that the majority of Americans understand what’s at stake and the importance of ensuring that Iran never has a nuclear weapon.”
Still, rising costs show no signs of slowing just weeks until the midterm elections.
“Trump knows the American people are angry at him,” said Senate Minority Leader Chuck Schumer, D-N.Y. “He’s sent costs skyrocketing. His chaos and wars have made America less safe.”
The conflict, spilled onto the House floor Tuesday, where seven Republicans joined Democrats to pass a resolution seeking to end the war.
On Wednesday, House leaders cut this week’s session — the last before the midterms — short, by a day.
“The House has done its work,” said House Speaker Mike Johnson, R-La. “This House has been the second most productive in terms of legislation in the history of the institution since 1789. We passed over 900 pieces of legislation. Right now, about 700 of those bills are sitting in the Senate awaiting action.”
Speaking to reporters Wednesday, Johnson said it’s “time for our members to go home to their districts and make their case to the American people — to go and explain all the great things we’ve done.”
“They have decided to cancel votes and run out of town without providing any relief to hardworking American taxpayers,” said House Minority Leader Hakeem Jeffries, D-N.Y. “House Democrats are fighting for an affordable America.”
With prices high and inflation still elevated, the Federal Reserve voted Wednesday to raise interest rates a quarter point for the first time in three years.
“The plain fact is that inflation is too high and has been for too long,” said Federal Reserve Chairman Kevin Warsh.
The CBO report also estimates the conflict could add about half a percentage point to inflation in the first quarter of 2027, due to higher energy costs.
