US Iran war bill rises to $37.5 billion, Pentagon seeks urgent funds

The cost of the US military campaign against Iran has climbed to $37.5 billion, up from an estimated $29 billion in mid-May, Defense Secretary Pete Hegseth told lawmakers on Tuesday.

Testifying before the Senate Appropriations Committee, Hegseth defended the Pentagon’s request for $67 billion in supplemental funding, calling it “urgent” and “necessary” to cover war-related expenses through the end of September. Joint Chiefs Chairman General Dan Caine backed the request.

Democratic Senator Jeanne Shaheen questioned the need for additional funding, arguing that the Pentagon still has $75 billion in unspent funds. She asked why the administration was seeking more taxpayer money instead of reallocating existing funds.

Hegseth responded that the unused money had already been earmarked for President Donald Trump’s other defence priorities, including the Golden Dome for America, hypersonic weapons and other munitions programmes.

The funding request does not include the future cost of rebuilding damaged US military bases in the Middle East.

Lawmakers from both parties also demanded greater clarity on the Trump administration’s strategy in the region. Republican Senator John Kennedy urged the Pentagon to provide “hard answers and straight talk,” including on the potential consequences if the US withdrew from the Strait of Hormuz.

Hegseth and Caine, however, did not provide specific details on whether Iran could impose fees on ships transiting the strategic waterway.