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The Pentagon Says It's Running Out of Money for the Iran War. Congress Wants Answers.

Elena MarquezPublished 5h ago4 min readBased on 12 sources
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The Pentagon Says It's Running Out of Money for the Iran War. Congress Wants Answers.

Defense Secretary Pete Hegseth and Gen. Dan Caine, the top military officer in the US, went before the Senate on July 21, 2026, to ask for $87.6 billion to keep fighting the war on Iran. The Pentagon told lawmakers it was running low on cash to continue the war.

This was the first time senators got to question Hegseth and Caine at length since a temporary pause in fighting (called a ceasefire) fell apart. Committee Chair Susan Collins of Maine led the hearing, with Democratic Vice-Chair Patty Murray joining in questioning the two witnesses.

Here is how the $87.6 billion would break down. About $67.1 billion is for the war itself. Another $21 billion would replace the guided bombs and missiles that US forces have already used up. The package also includes money to strengthen the factories and companies that make weapons for the military. The White House's budget office, run by Russell Vought, sent the request to Congress on June 24. About two days before that, the Pentagon had signaled it needed around $80 billion, mostly for the Iran war.

American casualties are mounting. At least two US soldiers were killed in an Iranian attack on July 17, 2026. Another US soldier died in Iraq while destroying an Iranian drone. Since the war began in February 2026, 17 American soldiers have died. Nearly 100 US troops have been wounded, though most injuries were described as minor.

Congress is also pressing the Pentagon on how much the war actually costs. OMB Director Vought previously told Congress the war's running cost was about $30 billion, a number experts largely think is far too low. In the House of Representatives, Rep. Betty McCollum, the top Democrat on the House defense spending panel, said the Pentagon missed a deadline to detail war costs. She also said the Pentagon has not said how many precision weapons are left after using thousands in Iran.

The $87.6 billion request is much smaller than what the military originally wanted. A senior administration official said in March 2026 that the US military had initially asked for $200 billion more in Iran war funding, as reported by Reuters and the Associated Press. At that time, Hegseth told Congress lawmakers had already boosted Pentagon funding. Even so, the trimmed-down request has still met resistance from both Democrats and Republicans.

The political tension goes beyond this one request. Senate Democrats blocked a $1 trillion defense bill on July 14, 2026, in protest. That bill is a must-pass package that sets military policy for the year and would give troops a pay raise. Senators Collins and Lisa Murkowski, both Republicans, have crossed party lines to support war-powers resolutions. These are measures that would limit the president's ability to wage war without Congress agreeing first. Collins has said she is frustrated that the administration's strategy for the war seems to change almost daily.

The broader context here is one of pressure on the administration from multiple directions at once: a war whose costs keep climbing, a funding request that has already been cut down from its original size and still faces pushback from both parties, a must-pass military policy bill held up by Democrats, and members of the president's own party backing measures to limit his war powers. The hearing gave senators their first real chance to press the Pentagon's leaders on all of these issues at the same time.

The question about weapons stockpiles raised by McCollum matters because $21 billion of the request is specifically for replacing used-up munitions. The Pentagon's failure to disclose how many precision weapons remain, along with the missed cost-reporting deadline, gives lawmakers who argue the administration is hiding information more reason to push back. Whether Congress approves the funding, and in what form, will likely depend on whether Hegseth and Caine's testimony convinced enough senators that the Pentagon can account for both the money already spent and the money it is now asking for.