Commodities July 21, 2026 04:59 PM

Pentagon Says US War in Iran Has Reached $37.5 Billion; Urgent Funding Sought amid Lawmaker Skepticism

Defense secretary presses Congress for supplemental funds as budget strain and political fallout grow ahead of midterms

By Hana Yamamoto
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U.S. Defense Secretary Pete Hegseth told lawmakers the cost of the United States’ war in Iran stands at $37.5 billion, a figure that includes current expenditures and projected costs through September 30. His testimony came at a contentious hearing in Washington, where members of both parties questioned the administration’s transparency and the broader fiscal and operational impacts of the conflict.

Pentagon Says US War in Iran Has Reached $37.5 Billion; Urgent Funding Sought amid Lawmaker Skepticism
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Key Points

  • Defense Secretary Pete Hegseth stated the U.S. war in Iran has cost $37.5 billion, a total that includes current spending and projected costs through September 30.
  • The administration has requested nearly $90 billion in additional funding, and Hegseth urged support for a $1.5 trillion department budget for 2027; failure to secure funds could curtail training and affect maintenance and future capabilities, impacting the defense sector and military personnel budgets.
  • Recent threats to expand target sets to include energy infrastructure and a key oil hub highlight potential impacts on the energy sector and raise the prospect of further escalation that could affect markets and national budget planning.

U.S. Defense Secretary Pete Hegseth on Tuesday told lawmakers that the United States’ war in Iran has cost $37.5 billion so far, a total he said includes certain active expenditures as well as anticipated spending through September 30. Hegseth faced skeptical questions in a congressional hearing in Washington as he sought urgent supplemental funding for the campaign.

The hearing unfolded against a politically charged backdrop with about six months to go before midterm elections. Democrats are seeking to tie the conflict to concerns about affordability as public opinion turns against the war, and both parties of Congress have expressed frustration over what they say has been limited information from the White House and Pentagon about strategy and objectives.


Numbers and requests

Hegseth’s $37.5 billion figure covers recorded costs and projected outlays through the end of the fiscal quarter on September 30. It was not made clear at the hearing how the Pentagon derived that specific total. Earlier reporting cited an administration estimate that the first six days of the war alone cost at least $11.3 billion.

Last month, the president requested nearly $90 billion in additional funding from Congress, most of which is tied to the Iran conflict. Hegseth urged lawmakers not only to approve the supplemental spending but also to back a longer-term budget submission, saying the department needs to be funded at $1.5 trillion for 2027. "Not funding this department at $1.5 trillion, I believe, is the greatest threat that our nation faces," he said at the hearing.


Congressional response and political pressure

Members of Congress from both parties voiced displeasure at the administration’s handling of the campaign and the level of communication provided to lawmakers. Senator Patty Murray, the top Democrat on the Appropriations Committee, criticized the president’s rhetoric and tactics, saying, "The president is threatening escalation and war crimes, and suggesting this could be another forever war."

Senator Kirsten Gillibrand also pressed Hegseth on the shifting public statements and apparent inconsistencies in the White House’s messaging. "The reason why they (people) are so upset with you and this administration is because the words you have used in the past don’t add up," she said. "It’s either over, or it’s not over. It’s within two weeks, or it’s not two weeks, it’s either missiles or it’s not missiles."


Operational and budgetary impacts

Hegseth warned that, absent emergency funding, the Pentagon would need to curtail military training. He said the war has put pressure on the department’s budget, which approaches nearly $1 trillion, and could threaten funding lines that affect military personnel and longer-term investments.

General Dan Caine, chairman of the Joint Chiefs of Staff, acknowledged at the hearing that the Pentagon would look for ways to ensure service members are paid, but he warned there could be difficulty covering maintenance costs and investing in future capabilities if funds are constrained.


Combat effects and troop casualties

The fragile ceasefire between the U.S. and Iran collapsed earlier this month, and both sides have been conducting daily strikes. U.S. military fatalities in the conflict rose to 18 over the weekend, and roughly 430 U.S. troops have been injured. The Pentagon reported that 100 service members were injured since July 7, and that 96% of those injured have returned to duty.


Escalation and potential target expansion

In recent days the president has threatened to widen the list of targets struck in Iran to include energy plants and bridges, to send ground forces to seize the Kharg Island oil hub, and to bomb a deep-underground nuclear-linked site referred to as Pickaxe Mountain. On Tuesday the president said the U.S. would take out the mountain facility "pretty soon."

Lawmakers at the hearing expressed concern that such public threats could raise the risk of further escalation and complicate congressional deliberations over additional funding.


What is unresolved

  • How precisely the $37.5 billion total was calculated was not explained at the hearing.
  • It remains uncertain which specific budget lines will be cut or delayed if Congress does not approve the supplemental funding requested by the administration.
  • Members of both parties continue to press for clearer briefings and greater transparency about campaign objectives and long-term plans.

The hearing underscored the intersection of operational demands, budgetary pressure, and political risk as Congress weighs whether to provide the administration with additional funds for the conflict in the months ahead.

Risks

  • If Congress does not approve the supplemental funding, military training could be curtailed and maintenance and investment in future defense capabilities may be delayed - affecting readiness and defense contractors.
  • Uncertainty about how the $37.5 billion total was calculated complicates oversight and congressional decision-making, creating fiscal and transparency risks for budget appropriations.
  • Public and political backlash against the war, particularly ahead of midterm elections, increases the risk that necessary appropriations may not pass, which could force reallocation within the Pentagon’s nearly $1 trillion budget and strain personnel and operational funding.

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