Defense Secretary Pete Hegseth reveals the escalating financial toll of the Iran war, urging Congress for $87 billion in new funding amid rising tensions.
New Delhi, India Jul 22, 2026 ALN: The war with Iran has cost the US some $37.5 billion (£28 billion) so far - an increase of nearly $8 billion since the last estimate in May, Defence Secretary Pete Hegseth has said.
Hegseth told the Senate Appropriations Committee it was urgent that lawmakers approve another $87 billion in congressional funding for the Pentagon, with $67 billion of that destined for operations in the Middle East. This request for additional funding comes against a backdrop of escalating military operations and rising tensions in the region, which have drawn significant attention both domestically and internationally.
The hearing was disrupted several times by anti-war protesters and ended in a shouting match between the defence secretary and a senator. The presence of protesters highlights the growing public dissent regarding the US military's involvement in foreign conflicts, particularly in the Middle East, where sentiment has been increasingly critical of prolonged military engagements.
It was Hegseth's first appearance on Capitol Hill since hostilities between the US and Iran restarted last week and comes after three American soldiers were confirmed killed in the region. The renewed conflict has raised questions about the effectiveness and implications of US military strategy in the Middle East, as well as the human cost of ongoing military operations.
The White House asked Congress in April for $1.5 trillion for the Pentagon over the next fiscal year, which would raise American military spending to an all-time high in the modern era. This proposed budget reflects a significant shift in military funding priorities, with a focus on enhancing the US's global military presence and capabilities amid rising geopolitical tensions.
The US carried out an 11th consecutive day of strikes on Tuesday. Iran has been retaliating with strikes of its own against the US and its allies in the Middle East. The cycle of violence has intensified, raising concerns about the potential for a broader conflict that could destabilize the region further.
The defence secretary began Tuesday's testimony by saying, "we live in a dangerous " and that it required bold and swift action. This statement underscores the administration's view that immediate military engagement is necessary to counter perceived threats from Iran and its proxies in the region.
After being interrupted by protesters, Hegseth went on to say his funding request came at an urgent time. "Without these funds, we face critical shortfalls that threaten our ability to also simply pay our service members, rapidly replenish equipment and munitions, and sustain vital operations without disruption," Hegseth said. The emphasis on funding to support military personnel reflects the administration's commitment to maintaining troop morale and operational readiness during ongoing conflicts.
Every dollar appropriated, he added, would be used to build the "lethality" of US military forces and "reinforce peace through strength." This phrase has become a cornerstone of US military policy, suggesting that a strong military presence is essential for maintaining peace and deterring aggression from adversaries.
Senate Appropriations Committee chairwoman Susan Collins, a Republican, questioned Hegseth over what the impact would be if the budget needs were not met. Hegseth said current and future training for military members would need to be cut without the funds, as he repeatedly blamed former President Joe Biden's administration for what he said was an underfunded military. This exchange highlights the partisan divisions in Congress over military funding and the broader implications of budgetary decisions for national security.
The most senior Democrat on the committee, Patty Murray, pushed back on the funding request, saying it "does not make a lot of sense." This skepticism among Democrats reflects a broader concern about the sustainability of military spending and the need for a more balanced approach to national security that also addresses domestic priorities.
Asked by Democratic Senator Dick Durbin if he had an estimate for how much the war in Iran has cost so far, Hegseth gave the $37.5 billion figure. Two Democratic sources and a third source familiar with the matter told CBS that they believe the actual cost of the Iran war is much higher. They said the current estimate did not include costs like construction for damaged American bases. This discrepancy in cost estimates raises questions about transparency and accountability in military budgeting, particularly regarding the long-term financial implications of ongoing conflicts.
There had been no official government estimate of the US financial cost of the war since 12 May, when a senior Pentagon official put the figure at $29 billion. The Pentagon previously told lawmakers the war had cost the US some $11.3 billion in the first week. These figures illustrate the rapid escalation of costs associated with military operations and the challenges of accurately forecasting future expenditures in a dynamic conflict environment.
The Pentagon chief argued that if approved, the funding request would be a "generational investment" that would ensure the US avoided "playing catch-up" with the militaries of other nations. This rationale for increased military spending reflects a strategic imperative to maintain technological and operational superiority in an increasingly competitive global landscape.
Iran and the US agreed to a ceasefire in April, but the truce broke down and hostilities resumed last week. The breakdown of the ceasefire underscores the fragile nature of peace agreements in the region and the difficulty of achieving a lasting resolution to the underlying conflicts.
At Tuesday's hearing, New York Democratic Senator Kirsten Gillibrand accused the Trump administration of seeking "unlimited money for bombs" from Congress, while American citizens cannot afford to "feed their families." She asked why Hegseth was asking for tens of billions of dollars for a war the president said had already been won. This critique highlights the growing disconnect between military funding priorities and domestic economic challenges faced by many Americans.
The hearing culminated in a shouting match between Hegseth and Democratic Senator Gary Peters. Peters called Hegseth a "failure" and said the Trump administration had created another "forever war." Hegseth told Peters "shame on you," adding that the Michigan senator had "Trump derangement syndrome." This exchange reflects the heightened political tensions surrounding military funding and the broader debate over US foreign policy in the Middle East.
Most Democrats are opposed to the supplemental funding request, and there is discontent in Republican ranks too. Some of the fiscal hawks in the Republican Party want spending cuts elsewhere to offset the budget. This division within the Republican Party complicates the prospects for securing the requested funding and reflects broader concerns about the sustainability of military expenditures in the context of a growing national debt.
Either way, the House of Representatives leaves town on Thursday and the two chambers of Congress will not be jointly back in session until September. This timeline presents challenges for the Pentagon in securing timely funding for ongoing operations, particularly in a rapidly evolving conflict environment.
Even if Republicans can muster the votes, it's going to be a couple of months before the Pentagon can get the funds. The potential delay in funding raises questions about the military's operational readiness and ability to sustain ongoing deployments in the face of escalating hostilities.
During Hegseth's hearing, Trump - who was at the White House - posted a list of longer, bloodier US wars, noting their duration and death toll. He wrote on Truth Social that 18 had died so far in the US war with Iran, which began on 28 February. This statement reflects the administration's efforts to frame the conflict within a historical context, emphasizing the human cost of military engagements.
On Tuesday, the Pentagon announced the death of Sgt Michael Emmanuel Swinton, a 30-year-old US soldier, in Iraq. It also said another US soldier Sgt Angel Rampersad, 28, was believed dead in Jordan. A day earlier, the military identified two other US service personnel killed in action in Jordan as Pfc Isabella Gonzales, 19, and 1st Lt Tyler Feehan, 25. The loss of these service members underscores the tragic human cost of military operations and the impact on families and communities across the nation.
Trump is due to go to an air base in the US state of Delaware on Wednesday morning as the soldiers' flag-draped coffins arrive home. This event serves as a somber reminder of the sacrifices made by military personnel and the ongoing toll of conflict on American society.
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