Secretary of War Pete Hegseth informed the Senate Appropriations Committee on July 21, 2026, that the estimated cost for the Iran war has increased to $37.5 billion. This figure includes additional military pay and operations and maintenance costs anticipated through the fiscal year, rising from the previous estimate of $29 billion reported in May.
Hegseth was part of a panel of officials who testified regarding the Trump administration's $87 billion supplemental budget request, which allocates $67 billion for the Department of War. Other officials present included General Dan Caine, the chairman of the Joint Chiefs of Staff, and Agriculture Secretary Brooke Rollins, along with Senators Alex Padilla (D-CA), Ted Budd (R-NC), and Mike Rounds (R-SD).
In his written testimony, Hegseth detailed that $45.9 billion would be directed towards defense production, modernization, and acceleration, while $21.3 billion would address urgent requirements. This includes $15.1 billion for core operational costs and $2 billion for replacing equipment lost or damaged in combat.
The Trump administration is aiming for a $1.5 trillion defense budget for fiscal 2027, with a base budget request of $1.15 trillion and an additional $350 billion sought through reconciliation.
Hegseth cautioned that without the necessary funding, future military training and operations could be significantly impacted, stating, "Without these funds, we face critical shortfalls."
The U.S. military has resumed daily strikes in Iran over the past 10 days and has restarted a naval blockade of Iranian ports in response to ongoing attacks on commercial vessels. As of July 21, the Navy has redirected eight commercial vessels and disabled one. Iran has retaliated by targeting U.S. bases in the Middle East.
Recent reports indicate that three U.S. service members were killed in an Iranian strike at Muwaffaq Salti Air Base in Jordan, bringing the total U.S. fatalities in the Iran war to 17. Additionally, nearly 100 U.S. troops have been reported injured since July 7, with 96% of those injuries classified as minor.
Hegseth noted that despite ongoing military actions, Iran is currently at its weakest military position in a decade. General Caine acknowledged the limitations of air power and stated that Iran will continue to pose a challenge in the future.