December 5, 2002

THINK TANK REPORT ESTIMATES US WAR ON TERRORISM WILL COST $252.5 BILLION IN FY2003
By John Fogarty

International Horizons Unlimited, a terrorism prevention and strategies think-tank based in San Antonio, Texas, this morning released an "analysis of public documents obtained from The General Accounting Office, The Office of Management and Budget, five federal departments and multiple agencies, state and local entities and private sector sources" which show "America has spent $137.6 billion on the war on terrorism in the 2002 fiscal year, and is committed to spend almost double that amount -- $252.5 billion in FY 2003." The report, which the group said is the first of its kind, examines spending and spending proposals through Nov. 26, 2002.

Dr. Saul B. Wilen, president of International Horizons Unlimited said in releasing the study, "While terrorism must be fought, the massive diversion of funds essential to support the programs of states and communities for healthcare, education, and other essential programs could further weaken the nation's already fragile economy." He called for "prevention strategies to terrorism, which are the most likely strategies to succeed, and the most cost effective."

A summary of the spending on the war on terrorism for FY-2002 and projections for FY 2003 compiled by Wilen and his staff follows:

• "Military War on Terrorism Including Afghanistan, Indonesia, The Philippines, Yemen, and Pakistan (and financial support) FY 2002, $40 billion. 2003, $35 billion (Estimate assumes minimum commitment of 250,000 troops in Iraq for two months and carryover costs from the other areas.)."
• "Airline Loan Guarantees 2002, $25 billion. 2003, unknown."
• "Airport Security 2002, $7 billion. 2003, not available."
• "Terrorism Related Insurance Claims, covered for 9/11/01 Losses, 2001-2002, $40 billion. 2003, up to $15 billion in annual claims by insurance industry and up to $90 billion from the Federal Government."
• "Department of Homeland Security 2001-2002, unknown. 2003, $80 billion (including operating budget of $37.45 billion.)."
• "Upgrading of Intelligence Functions, 2001-2002, $5 billion. 2003, $5 billion for FBI or other domestic intelligence agency."
• "Rebuilding of New York City and the Pentagon 2001-2002, $4.2 billion. 2003, unknown."
  "Private Sector Investment in Security and Securing the Critical Infrastructure 2001-2002, $2 billion. 2003, $4 billion."
• "University and Private Sector Research 2001-2002, $1.7 billion. 2003, $3.9 billion."
• "Combating Cyber-Terrorism, 2001-2002, $1.5 billion. 2003, $3 billion."
• "First Responders Training, Protective Gear, Chemical Detection Equipment 2001-2002, $937 million. 2003, $3.5 billion."
• "Bio-terrorism to the Department of Health and Human Services -- Public Health, Laboratories, Surveillance 2001-2002, $3 billion. 2003, $4.3 billion."
• "Transportation Security Administration 2001-2002, $4.7 billion. 2003, $5.3 billion."
• "Trucking Industry 2001-2002, $500 million. 2003, $500 million."
• "State, Regional, and Local Efforts Including Law Enforcement, Planning, First Responders, and Healthcare 2001-2002, $2.1 billion. 2003, $3 billion."