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Iran war has cost US $37.5bn so far, Hegseth says, as Pentagon seeks billions more

July 22, 2026

Defense Secretary Pete Hegseth testified before the Senate Appropriations Committee requesting an additional $87 billion in Pentagon funding, with $67 billion designated for Middle East operations amid renewed hostilities with Iran. He disclosed that the Iran conflict has already cost the United States approximately $37. 5 billion, representing an $8 billion increase since May's estimate, though some sources suggest actual costs are considerably higher.

Who is affected

  • American soldiers (three confirmed killed in the region)
  • US service members who face potential payment and training disruptions
  • Defense Secretary Pete Hegseth
  • Senate Appropriations Committee members, including Chairwoman Susan Collins (Republican) and Senators Patty Murray, Dick Durbin, Kirsten Gillibrand, and Gary Peters (Democrats)
  • Anti-war protesters who disrupted the hearing
  • American citizens (referenced by Senator Gillibrand regarding affordability concerns)
  • Iran and US allies in the Middle East experiencing retaliatory strikes
  • The Pentagon and White House
  • Former President Joe Biden's administration (blamed for military underfunding)

What action is being taken

  • The US is carrying out strikes against Iran (described as the 11th consecutive day on Tuesday)
  • Iran is retaliating with strikes against the US and its allies in the Middle East
  • Defense Secretary Hegseth is testifying before the Senate Appropriations Committee seeking approval for $87 billion in congressional funding
  • The Pentagon is requesting lawmakers approve the additional funding
  • Senate committee members are questioning Hegseth about the budget request and war costs

Why it matters

  • This situation matters because it represents a significant escalation in US military spending and involvement in the Middle East, with the Pentagon requesting funding that would raise American military spending to an all-time high in the modern era. The resumed hostilities with Iran following a failed ceasefire have already resulted in American casualties and substantial financial costs that some sources believe are underestimated. Without the requested $87 billion in additional funding, the Pentagon warns of critical shortfalls that could affect basic military operations including paying service members, replenishing equipment and munitions, and maintaining training programs. The contentious nature of the hearing, marked by protests and partisan conflict, reflects deep divisions over whether the US is entering another "forever war" and whether massive military spending is justified when American families face economic hardships.

What's next

  • No explicit next steps stated in the article

Read full article from source: BBC