Trump's 'Department of War' Rebrand Could Cost $125 Million, Says CBO for Stationery and New Signs

Renaming the U.S. Department of Defense the 'Department of War' could cost up to $125 million, according to a new report from the Congressional Budget Office. The analysis states that the cost depends on how broadly and quickly the change is implemented. A minimal implementation could cost only a few million dollars.

The CBO also noted that a statutory renaming—meaning a formal legislative change—could cost hundreds of millions of dollars, depending on the approach taken by Congress and the Defense Department. The report was requested by Senate Democratic leaders Chuck Schumer and Jeff Merkley.

The Pentagon has more than 6.5 million square feet of office space, and a large number of signs, logos, and seals would need to be updated as part of the rebranding. Changing the name at a single Army base alone could cost about $5 million, according to the CBO.

Why Did This Happen?

The move originated with an executive order from Donald Trump, who directed the Department of Defense to consider the name change. The order tasked Pete Hegseth with recommending actions to permanently alter the department's name.

Despite the executive action, no statutory name change has been made official. Republican lawmakers, including Sens. Mike Lee, Rick Scott, and Marsha Blackburn, introduced legislation to formalize the name change, but the measure has not advanced.

What Are Analysts Watching Next?

Pentagon officials have not provided a clear timeline or detailed recommendations on how to proceed with the name change. The CBO report indicates that any large-scale rebranding would require careful planning to manage costs effectively.

The report also highlights that the Pentagon's current annual budget is close to $1 trillion. This means that the cost of the name change, while significant, would represent a small fraction of the overall defense budget.

Analysts are watching how Congress and the Pentagon decide to implement the name change, if at all. The report suggests that the costs could range from a modest $10 million for internal rebranding to potentially hundreds of millions for a full-scale statutory change.

What Are the Broader Implications?

The CBO, established more than 50 years ago, provides nonpartisan budgetary analysis to support the legislative process. This report is part of its ongoing effort to provide detailed cost assessments for proposed policy changes.

The name change proposal has also drawn attention to other large-scale government projects, such as the $2.5 billion renovation of the Federal Reserve headquarters. These projects often face rising costs due to factors like inflation, supply chain issues, and regulatory requirements.

The CBO's report on the 'Department of War' rebranding underscores the importance of careful planning and budgeting for any major government reorganization. The potential cost of the name change raises questions about how such projects are managed and whether they deliver long-term value to taxpayers.

What Comes Next?

The CBO report does not indicate whether the name change will actually proceed. However, it does provide a clear framework for understanding the financial implications based on the scale of the implementation.

Pentagon officials have not yet responded to requests for comment on the report's findings. This lack of clarity means that the future of the 'Department of War' rebranding remains uncertain.

Investors and analysts will be watching for further developments, particularly as Congress considers future budget proposals. The cost of the name change could become a topic of debate in upcoming fiscal discussions.

The broader implications of the report also extend to other government projects, including infrastructure and military spending. As costs rise across the federal budget, the need for transparency and efficiency in large-scale projects will likely remain a key issue for policymakers.