Pentagon faces urgent budget shortfall driven by war with Iran

22 July, 08:29 AM
World
To bridge the gap until the 2027 fiscal year begins on Oct. 1, the Pentagon is already moving money around, The Washington Post reported (Photo: REUTERS/Yuri Gripas)

To bridge the gap until the 2027 fiscal year begins on Oct. 1, the Pentagon is already moving money around, The Washington Post reported (Photo: REUTERS/Yuri Gripas)

The Pentagon faces an urgent budget shortfall caused largely by the war with Iran, The Washington Post, citing current and former U.S. officials, reported on July 21.

The outlet stated that the lack of funding is already leading the Pentagon to limit training and maintenance that help maintain the U.S. forces’ military readiness.

“And the collapsed ceasefire with Iran could further strain the military’s budget: after four U.S. service members died during more than a week of intensified fighting, officials in Washington signaled they were preparing for a wider conflict,” The Washington Post wrote.

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The White House has asked Congress for an immediate infusion of $67 billion to help cover the costs of the war with Iran, but lawmakers are gridlocked over how to proceed, according to the outlet.

“The House plans to leave Washington on July 23 for a month-long recess, leaving any deal on military funding weeks away at the earliest,” WP wrote.

Pentagon press secretary Sean Parnell said in a statement that Defense Secretary Pete Hegseth would “do whatever is necessary” to preserve military readiness and that defense funding is “essential”.

Multiple current and former officials said the military will quickly be forced to make “painful trade-offs” unless Congress takes the necessary measures.

White House budget director Russell Vought told lawmakers that the war had so far cost about $30 billion. However, The Washington Post noted, citing multiple unnamed independent analysts, that the actual costs are likely much higher. 

“To bridge the gap until the 2027 fiscal year begins on Oct. 1, the Pentagon is already moving money around. Military exercises and trainings that help keep units prepared for combat are being limited or canceled, the four current and former officials said,” WP wrote. “The budget for equipment and facility and maintenance is also being drained to cover the shortfalls, the officials said.”

In recent weeks, the Pentagon has asked Congress for permission to reallocate $4.3 billion from trainings and weapons purchases to address more urgent priorities, according to a document reviewed by The Washington Post. Congress has yet to act on that request, WP concluded.

U.S. strikes on Iran

The U.S. military launched a large-scale strike on military targets in Iran on July 5, hitting more than 140 sites in retaliation to an IRGC attack on a Cyprus-flagged commercial container ship in the Strait of Hormuz.

CENTCOM carried out a second wave of airstrikes targeting southern Iran, including the port cities of Chabahar and Bushehr on July 8 in response to Iranian drone attacks on three commercial oil tankers.

Iran announced the full closure of the Strait of Hormuz to shipping after another incident involving a civilian vessel, saying the restrictions would remain in place until further notice, it was reported July 12. Tehran also threatened new strikes on U.S. military bases in the event of further escalation by Washington.

Iran launched missile and drone strikes against Kuwait, Bahrain and Jordan on July 14. Jordan. Tehran said the attacks were retaliation for the U.S. strikes.

U.S. Central Command announced that the United States had reinstated its naval blockade of Iran on July 15.

Tehran warned on July 16 that it would launch a large-scale attack if U.S. President Donald Trump followed through on his threats to strike Iranian infrastructure.

The Pentagon announced on July 21 that nearly 100 U.S. service members sustained injuries – primarily minor ones – following a series of Iranian strikes against U.S. military bases across the Middle East since July 7.

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