The Cost of the Iran War and Domestic Needs
The ongoing war in Iran is draining billions from the U.S. economy with every passing day. Meanwhile, many domestic programs are in urgent need of funding.
In a recent private meeting with Congress, the Trump administration revealed that the initial week of the Iran conflict cost around $11.3 billion, which, tragically, also includes the loss of several lives. This amount reflects the expenses for munitions and initial operations but doesn’t even factor in maintenance, personnel costs, or pre-war preparations. While some may argue that this price is justifiable to dismantle the Iranian regime, the financial strain on American taxpayers shouldn’t be overlooked.
The $11 billion expended could be directed toward significant domestic initiatives aimed at enhancing U.S. security, boosting job creation, and reducing reliance on foreign resources—aligning with President Trump’s 2024 goals.
One notable figure on social media highlighted that the U.S. spent $5.3 billion on the Iran war within just six days, breaking it down to an average of $1 billion a day or $41 million an hour.
Boosting Domestic Energy Production
Increasing domestic energy production is essential for America to lessen its dependence on foreign oil and stabilize consumer prices. As a direct consequence of U.S. involvement in Iran, diesel prices have skyrocketed to over $5 per gallon in some regions. The current national average for regular gasoline sits at $3.63, a notable increase from just a month ago when it was around $2.94.
On Tuesday, President Trump announced plans to build the first large-scale greenfield oil refinery in the U.S. in nearly half a century, located in Brownsville, Texas. This facility is projected to process up to 168,000 barrels per day of shale crude oil, primarily sourced from the U.S. Groundbreaking is anticipated as early as April 2026, with full operations expected within three to five years. This project could create thousands of construction jobs as well as permanent positions once finished.
This endeavor is significant, as it marks the first new large-scale refinery built in decades. High costs, complicated regulations, and opposition from clean energy advocates have previously hindered such investments. However, the Brownsville refinery aims to leverage the U.S. shale boom and the Trump administration’s supportive energy policies to rejuvenate the industry.
The construction costs are estimated to range from $3 billion to $4 billion. Reliance Industries Limited, India’s largest private company, is set to contribute a substantial investment toward its construction, and in return, they will have a 20-year agreement to purchase at least 80% of the refinery’s output.
This initiative is also viewed as a means to combat the national deficit. By exporting refined fuels to India, it could conserve an estimated $300 billion over its lifetime. Moreover, it aims to diversify India’s supply chains, reducing their dependency on Middle Eastern resources.
If the U.S. reallocated the $11 billion, similar refinery projects could be funded, enhancing energy security and job opportunities without resulting in the economic burdens associated with international conflicts like the Iran war.
Modernizing U.S. Critical Infrastructure
It’s evident that the U.S. infrastructure is in dire need of upgrades. Just a drive along major highways or a trip through U.S. airports reveals significant shortcomings, not to mention the frequent power outages due to an overstressed grid.
The 2025 Infrastructure Report Card from the American Society of Civil Engineers (ASCE) gave the U.S. a cumulative ‘C’ grade—the highest since the grading began in 1998, although still indicative of mediocrity. The energy grid, deemed essential, received a “D” rating, primarily due to limited capacity and aging components, reflecting the increasing demands from data centers and electric vehicles.
According to the report, an estimated 70% of transformers are over 25 years old, with similar age concerns surrounding circuit breakers and transmission lines. Modernization projects, like enhancing power lines, can cost billions, and while some regions are holding off on rate hikes to make electricity more affordable, ultimately, consumers will bear the costs of these upgrades.
Full modernization could demand $2 trillion by 2030. Allocating $11 billion could kickstart vital projects, such as upgrading substations or converting overhead lines to underground systems.
America’s roads and bridges are not faring much better, facing a $105 billion maintenance deficit which directly affects commerce and daily life. While the Biden administration has passed the $1.2 trillion Infrastructure Investment and Jobs Act of 2021, critics argue that little of the new funding is actually going towards repairs and that states lack oversight on how to wisely spend allocated funds, leading to various structural failures.
Recent bridge collapses across several locations illustrate the consequences of neglected infrastructure systems. The TFA has detailed that these incidents are due to various factors, including aging structures and poor inspection protocols.
Since 2025, the Trump administration has allocated billions towards repairing roads and bridges, with announcements of significant relief funding for emergency repairs to those affected by natural disasters. The ASCE Report Card pointed to a $139.6 billion shortfall in airport infrastructure by 2029, underlining an urgent need for investment in these critical areas.
Modernizing Nuclear Weapons
Investing in maintaining the U.S. nuclear deterrent remains crucial for national security. The Congressional Budget Office (CBO) estimates the total cost for operating and upgrading the nuclear arsenal will escalate to nearly $946 billion between 2025 and 2034, averaging around $95 billion annually.
Using $11 billion could cover over 11% of these average yearly costs and significantly bolster key defense programs. This funding could expedite necessary upgrades, testing, and production to maintain the reliability of the U.S. nuclear arsenal.
As Americans grapple with the financial impacts of the current administration, it’s evident that prioritizing domestic needs is essential. The military-industrial complex continues to absorb funds that could otherwise secure the nation’s energy production and improve transportation infrastructure, illustrating a need to rethink these financial priorities.
