Pentagon Faces Mounting Budget Crisis Due to Iran War

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The Pentagon is confronting an increasingly severe budget shortfall driven largely by the expanding war with Iran, forcing cuts to military training and maintenance while lawmakers remain deadlocked over President Donald Trump's request for billions in emergency funding, The Washington Post reported Tuesday.

Defense officials and lawmakers say some critical operations accounts could run dry within weeks, raising concerns about military readiness as the administration prepares for the possibility of a broader conflict following the collapse of a ceasefire with Tehran.

The White House has asked Congress to approve an immediate $67 billion emergency funding package to cover war-related expenses, but the request has stalled amid partisan disputes, with the House scheduled to leave Washington Thursday for a monthlong August recess.

"Everybody needs to look at this situation and get rid of the complacency that they have," North Carolina GOP Rep. Pat Harrigan, a member of the House Armed Services Committee, said in an interview.

The Pentagon declined to comment.

War Secretary Pete Hegseth and Joint Chiefs Chairman Gen. Dan Caine are expected to press lawmakers Tuesday during a Senate Appropriations Committee hearing on the emergency funding, while White House budget director Russell Vought is also scheduled to brief House Republicans on the administration's request.

The financial strain comes after Trump launched an air campaign against Iran in late February, predicting the operation would conclude within weeks. Instead, the conflict has stretched on for months as Tehran continues to close the Strait of Hormuz, disrupting global oil and fertilizer shipments and contributing to broader economic uncertainty.

According to current and former U.S. officials, the Pentagon has already begun shifting funds from training, maintenance, and weapons procurement accounts to sustain ongoing combat operations, The Washington Post reported.

Military exercises and readiness training have been curtailed or canceled, while funding designated for equipment repairs and facility maintenance is being redirected to cover operational expenses, four current and former officials said.

Congress has yet to approve a Pentagon request to transfer $4.3 billion from training programs and weapons purchases into higher-priority accounts.

A Trump administration official said the White House budget office is exploring additional transfers into Pentagon operations and maintenance accounts, though doing so would require reducing funding elsewhere.

Vought told lawmakers last month the conflict has cost $30 billion so far, though independent analysts estimate the total is substantially higher because the administration's estimate excludes rebuilding damaged U.S. military installations in the Middle East following Iranian missile attacks.

House Republicans are attempting to move a broader $73 billion defense package through the budget reconciliation process, slightly exceeding the White House's request. However, the proposal faces uncertain prospects in the Senate after Senate Majority Leader John Thune, R-S.D., questioned whether that approach could succeed.

Democrats have largely opposed approving additional war funding while criticizing the administration's handling of the conflict, and several Republicans have also voiced frustration over what they describe as inadequate communication from the Pentagon.

Lawmakers say War Department officialshave missed deadlines to provide detailed information about the war's costs and the military's remaining inventories of precision-guided munitions after expending thousands of them during operations against Iran.

"We need to know what we're purchasing and why we're purchasing it," Rep. Betty McCollum of Minnesota, the ranking Democrat on the House defense appropriations panel, said.

Hegseth has publicly dismissed concerns about depleted weapons stockpiles, saying in a television interview last month that U.S. inventories are "great, and they're only getting stronger."

Privately, however, current and former officials said Pentagon leaders have expressed growing concern about replenishing precision weapons needed to deter potential adversaries such as Russia and China.

Following a classified briefing, McCollum said senior defense officials emphasized the urgency of rebuilding munitions inventories and indicated they were concerned Congress lacked sufficient information to evaluate the administration's funding requests.

The budget dispute comes as Congress also wrestles with Trump's proposed $1.5 trillion defense budget for fiscal 2027, a significant increase over the roughly $1 trillion currently allocated for national defense.

The proposal has drawn skepticism from lawmakers in both parties concerned about adding to the nation's $39 trillion debt and financing a war that polls show has limited public support.

Brian Freeman

Brian Freeman, a Newsmax writer based in Israel, has more than three decades writing and editing about culture and politics for newspapers, online and television.

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