How much did the Gulf War cost the US How much did the US pay for the Gulf War above and beyond the yearly cost for supporting its military? The US Department of Defense estimated the incremental cost at $61 billion. This additional cost included deployment, construction and operations in the Gulf. However, $54 billion was offset by contributions of other members in the Coalition. Two-thirds of the $54 billion was provided by the Gulf States ($36 billion) with the remaining one-third mostly provided by Japan and Germany ($16 billion). Notes on the graph: •Payments were made in one of two ways: with financial assets ("Cash") and with services such as s