WP: Pentagon faces budget shortfall as Iran war drains military funds

The Pentagon is facing an increasingly urgent budget shortfall as the cost of the war with Iran continues to rise, forcing the US military to scale back some training and maintenance activities while seeking additional funding from Congress, The Washington Post reports, citing sources –– current and former US officials.

The sources said several key defence funding accounts could be exhausted within weeks as President Donald Trump expands military operations against Tehran.

The financial strain has already prompted the Pentagon to limit military training exercises and maintenance programmes aimed at preserving combat readiness, four current and former officials said.

The funding pressure could intensify further after the collapse of a ceasefire with Iran and the deaths of four US service members during more than a week of intensified fighting, raising expectations of a broader conflict.

The White House has asked Congress to approve an emergency $67 billion package to help finance the war, but lawmakers remain divided, delaying action as the House prepares to begin a month-long recess later this week.

"Everybody needs to look at this situation and get rid of the complacency that they have," Representative Pat Harrigan, a Republican member of the House Armed Services Committee, said.

The Pentagon did not immediately respond to requests for comment.

Defence Secretary Pete Hegseth and Chairman of the Joint Chiefs of Staff General Dan Caine are scheduled to testify before the Senate Appropriations Committee on Tuesday to seek support for the funding request. White House Budget Director Russell Vought is also expected to brief Republican lawmakers.

Trump launched the military campaign against Iran in late February, initially saying it would conclude within weeks. However, the conflict has continued for months, while Iran's closure of the Strait of Hormuz has disrupted global oil and fertiliser trade.

Vought told lawmakers last month that the war had cost about $30 billion so far, although independent analysts estimate the total is significantly higher because the administration's figure excludes the cost of repairing US military facilities damaged by Iranian strikes.

The prolonged conflict has placed increasing pressure on the US Navy and Air Force, both of which have deployed additional aircraft and warships to the Middle East. Congressional aides said funding allocated for ongoing operations could be depleted before the end of the month.

To bridge the gap until the start of the 2027 fiscal year on October 1, the Pentagon has begun reallocating funds from other programmes. Officials said military exercises have been reduced or cancelled, while maintenance budgets have also been redirected to support operational needs.

According to a document reviewed by The Washington Post, the Pentagon has requested congressional approval to transfer $4.3 billion from training and weapons procurement accounts to more immediate priorities. Congress has yet to approve the request.

A Trump administration official said the White House was also working to shift additional funding into the Pentagon's operations and maintenance accounts, although doing so would require reducing spending elsewhere.

By Bakhtiyar Abbasov