Cost of Iran war rises to $37.5 billion, Pentagon requests $67.1 billion more

On July 21, 2026, Defense Secretary Pete Hegseth and Joint Chiefs Chairman Gen. John Caine testified before the Senate Appropriations Committee, requesting $67.1 billion in emergency supplemental funding for the ongoing Iran war and other Defense Department priorities. Hegseth reported that the conflict has cost $37.5 billion to date, up from $29 billion in May. The request includes $32.7 billion directly for war operations, with the remainder allocated to munitions ($21 billion), cybersecurity ($5.1 billion), drones ($2.4 billion), and other items. Senators from both parties expressed skepticism, noting the DoD received $156 billion in reconciliation funding and has a $1.3 trillion budget request. The war, which began February 28, has escalated with 10 consecutive days of U.S. airstrikes and 18 U.S. service members killed. At least 14 merchant mariners have died in Strait of Hormuz attacks, and transits have decreased as Iran asserts control over the waterway.