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Iraq War Cost $102 Billion Through September, Pentagon Says

By Tony Capaccio

Jan. 13 (Bloomberg) -- The U.S. spent $102 billion through Sept. 30 on the invasion and occupation of Iraq, with costs averaging $4.8 billion a month, the Pentagon comptroller's office said today.

The Pentagon spent $3.1 billion in September, the smallest amount since the $2.7 billion spent in November 2003, according to the comptroller. Bush administration officials in February may seek as much as $70 billion in additional Iraq funding in a request separate from the fiscal 2006 defense budget.

The $102 billion covers the period starting with the initial deployment of troops in the late fall and winter of 2002. The U.S. this month raised troop levels in Iraq to 150,000 from 138,000 to provide additional security for the Jan. 30 Iraqi national election and compensate for delays in training a new Iraqi security force.

The total amount spent ``seems consistent with recent projections of costs in Iraq,'' said Steven Kosiak, defense budget analyst with the Washington-based Center for Strategic and Budgetary Assessments. ``But it is important to remember these figures indicate only how much has been obligated -- that is, let out in contracts or paid out in salaries and benefits.''

``It does not necessarily reflect the true costs of the operations in Iraq,'' Kosiak said. ``We may have some significant bills yet to be paid for replacing some equipment worn out by these operations.''

The U.S. Army will need to spend more than $10 billion this year to repair or replace vehicles that are wearing out at four times the expected pace due to heavy combat use in Iraq, Massachusetts Democrat Congressman Martin Meehan, a member of the House Armed Services Committee, said this week.

Money Spent

There is a two-month lag between when the money is spent and data compiled. The $102 billion spent in fiscal 2004 includes $1.7 billion that's part of $25 billion in emergency spending for Iraq included in the fiscal 2005 defense spending bill.

As of today, 1,355 U.S. service personnel have died in Iraq, 1,213 since May 1, 2003. Another 10,372 have been wounded, according to the Pentagon's official Web site.

The U.S. has spent $39.8 billion through Sept. 30 billion in Afghanistan since the October 2001 invasion to displace the Taliban regime and attack al-Qaeda's terrorist network, today's Pentagon figures show.

The Pentagon is in the final stages of preparing the fiscal 2006 defense budget for release Feb. 7. A separate supplemental defense spending bill for Iraq expenses ``is still on track'' for next month, Pentagon spokeswoman Lt. Col. Rose-Ann Lynch said.

``The big question is how much will the administration ask for in its 2005 supplemental,'' Kosiak said. Congress already provided $25 billion in the 2005 defense appropriations bill for Iraq and Afghanistan. Many people expect the supplemental request to amount to $75 billion or possibly more, he said.

``That would bring the total for 2005 to some $100 billion,'' he said. ``Even given the higher than anticipated tempo of operations and the somewhat higher troop strength in Iraq, that seem like an awfully lot for one year.''

If the supplemental request is that high, it will likely include a ``substantial'' chunk of money for things that are not clearly directly related to the war, such as replacing or buying new Army equipment, Kosiak said

President George W. Bush is visiting the Pentagon his morning for an update on Iraq and other defense issues.

To contact the reporter on this story: Tony Capaccio at at acapaccio@bloomnberg.net

Last Updated: January 13, 2005 12:00 EST

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