The Pentagon Is Running Out of Money—Here's What Hegseth Plans to Do Next

Here's what it's all about

• The Pentagon is losing more and more money due to the ongoing conflict with Iran and fears a budget shortfall.
• U.S. President Donald Trump and Defense Secretary Pete Hegseth are asking Congress for a $67 billion bailout to cover the costs of the war.
• There is massive opposition. The Democrats, in particular, largely oppose new funding for the war.

Summary created with

The war in Iran is a major concern for the U.S. Following the collapse of the ceasefire and the recent deaths of four U.S. soldiers in combat, there appears to be no end in sight to the conflict. A budget crunch could soon arise due to the high level of spending, and the Pentagon’s funds are becoming increasingly scarce.

What can Defense Secretary Pete Hegseth do now? How much money is at stake for the U.S.—and how might this spending affect the country? An overview.

White House Budget Director Russell Vought stated last month that the war in Iran has cost about $30 billion so far. However, independent analyses estimate a much higher figure. For example, the White House’s estimate does not include the costs of rebuilding U.S. military bases in the Middle East that were damaged by Iranian attacks.

Erneute Angriffe

Sorge vor Ausweitung des Iran-Kriegs wächst

The Navy and the Air Force, in particular, are being strained more than expected by the conflict. Parts of the 2026 budget used to fund these services’ ongoing military operations could be exhausted by the end of the month. The explained two anonymous congressional staffers to the *Washington Post*.

The Pentagon is facing an acute budget crunch; according to current and former U.S. government officials, some key funding sources could be exhausted within just a few weeks. In the *Washington Post*, they explain that the financial crisis is already forcing the Pentagon to cut back on training and maintenance measures that are crucial to the military’s operational readiness.

The report goes on to say that if Congress does not provide additional funding, the military will soon be forced to make even more painful trade-offs. A representative of the Trump administration says that efforts are underway to reallocate some funds to the Pentagon’s operations and maintenance accounts. However, this would come at the expense of other important programs. The representative did not provide further details on this matter, however.

Support for Donald Trump continues to decline in the U.S. (File photo)

AP Pool AFP

There is also speculation about possible ammunition shortages, but Defense Secretary Pete Hegseth clearly dismissed this in an interview with CBS last month. He stated that U.S. stockpiles are “excellent, and they are getting stronger all the time.”

Anonymous Pentagon officials, however, have expressed far greater concerns to the *Washington Post*: The military urgently needs additional funding to replenish its ammunition stocks, which are also needed to deter adversaries such as Russia and China.

Defense Secretary Pete Hegseth wants to solve the Pentagon’s financial problems primarily through one means: more money. Donald Trump has called for an immediate cash injection to cover the costs of war—amounting to $67 billion. On Tuesday, Hegseth, along with General Dan Caine, Chairman of the Joint Chiefs of Staff, plans to appear before the Senate Budget Committee to advocate for the additional funding.

USA

Etappensieg für Pentagon im Rechtsstreit mit «New York Times»

This year’s defense budget totals about one trillion dollars. This includes one-time funding of 150 billion dollars that Congress approved last year for various military projects—ranging from modern weapons systems to strengthening the U.S. defense industry. For the year 2027, the Trump administration has requested $1.5 trillion. This massive increase has sparked a heated debate on Capitol Hill.

To bridge the gap until the start of fiscal year 2027 on October 1, the Pentagon is already reallocating funds. According to anonymous sources cited by the *Washington Post*, Hegseth would also use funds earmarked for equipment and for the maintenance of facilities and materials to close the funding gaps.

In recent weeks, the Pentagon has asked Congress for permission to redirect $4.3 billion from training programs and weapons purchases to more urgent areas. This is according to a document obtained by the *Washington Post*. Congress has not yet made a decision on this request.

Meanwhile, Republicans in the House of Representatives are working on a funding package. They plan to use a complex parliamentary procedure known as “reconciliation,” which can expedite the passage of certain budget measures. This is intended to enable $73 billion in additional defense spending. A vote on the matter is expected to take place this week.

No decision has yet been made regarding a possible cash injection. According to the *Washington Post*, there is reportedly significant disagreement among members of Congress. The House of Representatives plans to leave Washington on Thursday for a one-month recess. An agreement on additional military spending would therefore not be possible for at least a few weeks.

The Republicans’ plans to expedite the passage of certain budget measures to enable additional defense spending are being met with some criticism. Democrats largely oppose new funding for the conflict in Iran. They are blocking key defense bills as long as the administration continues a war that has drawn bipartisan criticism.

Republikaner bangen um Mehrheit

Donald Trumps Umfragewerte sinken in den Keller

In addition, even among lawmakers who are generally open to additional spending—including some Republicans—there is a certain amount of frustration that the Pentagon is not keeping Congress sufficiently informed about the spending.

When Hegseth testified before the House Committee on Defense Appropriations in April, the committee chairmen urged him to provide information on the costs of the war as soon as possible. The Pentagon subsequently allowed the deadline to pass and failed to provide the requested information in the weeks that followed.

"We need to know what we're buying and why we're buying it," said Democratic Representative Betty McCollum of Minnesota, the ranking Democrat on the committee, in an interview.

The Trump administration’s proposed $1.5 trillion for the 2027 defense budget is also viewed with controversy. Some lawmakers from both parties fear that this would further increase the national debt, which currently stands at $39 trillion—all to finance a war that is opposed by a large portion of the population.

Work on the budget bills has stalled in the Senate due to a dispute among members of the Budget Committee. The Democrats are refusing to approve any funding for fiscal year 2027 until an agreement on overall spending has been reached.