Iran War Costs US $37.5 Billion as Pentagon Seeks Emergency Funding

Pentagon warns additional funding is urgently needed to sustain military operations through September as lawmakers question the Trump administration's war strategy and spending priorities.

July 22, 2026 at 8:56 AM
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WASHINGTON: The United States has spent $37.5 billion on the war with Iran so far, Defence Secretary Pete Hegseth told lawmakers on Tuesday, as the Pentagon pressed Congress to approve an additional $67 billion in emergency funding to sustain military operations through the end of September.

Testifying before the Senate Appropriations Committee, Hegseth said the cost of the conflict had surged from an estimated nearly $29 billion in mid-May to $37.5 billion.

“The estimate we have as of today is $37.5 billion,” Hegseth told senators while defending the administration’s request for supplemental defence funding.

General Dan Caine, chairman of the Joint Chiefs of Staff, joined Hegseth in describing the funding request as “urgent” and “necessary” to cover the Pentagon’s operational costs for the Iran war over the coming months.

Lawmakers Question Spending Priorities

The funding request immediately drew sharp scrutiny from lawmakers, with Democratic Senator Jeanne Shaheen arguing the Pentagon still had roughly $75 billion in unspent funds at its disposal.

“Why are you asking the American people to absorb the cost of a war they don’t support instead of asking for transfer authority for unspent reconciliation funding?” Shaheen asked.

Hegseth rejected the criticism, saying the remaining funds had already been committed to other priorities under President Donald Trump’s defence agenda, including the “Golden Dome for America” missile defence programme, hypersonic weapons and other munitions investments.

The Pentagon acknowledged that the requested $67 billion does not include the future cost of rebuilding damaged US military bases across the Middle East.

Pressure Mounts Over War Strategy

Senators from both parties also demanded greater transparency over the Trump administration’s strategy for the conflict, expressing concern about the long-term financial and military implications of the war.

Republican Senator John Kennedy called for clearer answers on Washington’s objectives, asking what would happen if the United States withdrew from the Strait of Hormuz.

“We need some hard answers and some straight talk,” Kennedy said.

Neither Hegseth nor Caine offered specific details on whether Iran could impose transit fees on commercial vessels passing through the strategically vital waterway.

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