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Defense Secretary Pete Hegseth told senators Tuesday that the U.S. war in Iran has cost an estimated $37.5 billion since fighting began in late February, a figure that includes current spending and projected needs through the end of the fiscal year on September 30. The amount had not previously been disclosed by the Pentagon.
The updated tally came as Hegseth appeared before the Senate Appropriations Committee, where lawmakers are weighing the White House’s request for $87.6 billion in additional funding—money the administration says is needed to cover “urgent needs” tied to the conflict and to “reinforce peace through strength.”
Hegseth’s testimony unfolded against a backdrop of rising tensions in the region. The hearing follows the killing of three U.S. soldiers and President Donald Trump’s order for fresh strikes on Iran, developments that have intensified scrutiny of the war’s trajectory and the administration’s strategy.
As Hegseth began speaking, he was interrupted repeatedly by protesters, prompting brief pauses before he continued outlining the Pentagon’s operational and budgetary demands.
He said the $37.5 billion figure reflects a combination of ongoing military operations, pay for deployed personnel, and maintenance costs expected through September 30. Other senior officials, including Joint Chiefs of Staff Chair General Dan Caine, are also testifying, offering senators a broader picture of the conflict’s scope, the risks facing U.S. forces, and the financial pressures driving the administration’s push for swift congressional approval.
What to Know About War’s Mounting Price Tag
The Pentagon’s $37.5 billion estimate is a snapshot of a rapidly expanding financial burden. Analysts told CNN earlier this year that the war has cost U.S. taxpayers more than $890 million per day, driven by air and naval operations, missile interceptions and the deployment of ground forces.
In May, Pentagon comptroller Jules “Jay” Hurst III placed the cost at $29 billion, while a Center for Strategic and International Studies analysis last month estimated roughly $40 billion in expenses—excluding operational costs already baked into the Pentagon’s $1 trillion fiscal 2026 budget.
During Tuesday’s hearing, Senator Dick Durbin, an Illinois Democrat, asked Hegseth whether he expects the price to rise now that the ceasefire has collapsed. Hegseth said part of the $37.5 billion already accounts for expenses through the end of the fiscal year, including meals for deployed troops, but did not directly address whether the total will climb.
Lawmakers Question Transparency and 40 Percent Pentagon Budget Jump
The administration’s push for an additional $87.6 billion has sharpened concerns among Democrats and some Republicans who say the Pentagon has not fully explained how the money will be used. Outside the hearing room, Durbin told Newsweek that the testimony so far has raised more questions than answers.
Durbin said what struck him most was “the way they can’t explain how this money is going to be spent,” adding that the administration is effectively asking for “a 40 percent increase in the Department of Defense in the next fiscal year.” He called the request “unexplainable and unacceptable,” arguing that Americans deserve clarity before Congress approves tens of billions for what he described as “a war of choice in Iran.”
Pete Hegseth Testifies Before Senate
Hegseth’s appearance marks his first time before the Senate Appropriations Committee since the war with Iran re‑escalated this month, and lawmakers quickly signaled they intend to press him on more than budget numbers.
Senators are expected to question the Pentagon over new reporting that nearly 100 U.S. service members have suffered injuries since July 7, a figure that was not promptly disclosed publicly. The issue has already drawn bipartisan concern, with members warning that transparency lapses undermine public trust during an active conflict.
The hearing also emphasized a familiar split between Hegseth and Caine, whose public remarks have repeatedly diverged throughout the war.
Caine opened his testimony by honoring the four U.S. troops killed over the weekend, including one service member not yet publicly identified. He noted that 18 American personnel have died since the conflict began. Hegseth, by contrast, made no mention of the fallen troops—echoing a pattern seen in earlier briefings, where he has criticized media coverage of U.S. casualties as politically motivated.
In March, he dismissed reporting on troop deaths, saying: “When a few drones get through or tragic things happen, it’s front‑page news.…The press only wants to make the president look bad.”
Hegseth also offered new details about Project Freedom, a U.S. military effort to guide commercial vessels through the Strait of Hormuz. He told senators that the mission continued “covertly” after its public announcement in May and has helped shepherd 400 to 500 million barrels of oil through the waterway “under the nose of Iran.”
He asserted that the U.S. has “been in control of moving traffic” in the strait for “quite some time,” even as public ship‑tracking data shows a sharp drop in commercial movement amid recent U.S.-Iran strikes.
Pressed by Senator Patty Murray, a Washington Democrat, Hegseth acknowledged that Iran retains the capability to fire on commercial ships.
“Iran’s not charging tolls, and they’re shooting at ships right now,” he said.
Hegseth also told lawmakers that China and Russia are “at different levels” enabling aspects of Iran’s wartime activity. He declined to detail the extent of their involvement in an open session, citing classification concerns.
U.S. intelligence previously assessed that China was preparing to deliver new air‑defense systems to Iran, while Russia has provided advanced drone tactics learned from its ongoing war with Ukraine.
Hegseth and Peters Clash in Heated Exchange
The hearing’s most explosive moment came near the end, when Sen. Gary Peters, a Michigan Democrat, criticized the administration’s handling of the conflict and questioned whether the Pentagon’s strategy had failed.
Peters began by noting that the Strait of Hormuz “is still closed,” reminding Hegseth that it had been open before the war. He said global prices were lower before the conflict and that U.S. service members “are still dying,” asking bluntly: “So what’s different?”
“Your characterization of this incredible effort as a failure is reckless,” Hegseth said. “It’s irresponsible, and it smears the sacrifice of the troops… Shame on you and others who call this a quagmire and a failure, and then you want to turn around and say you support the warfight. Either you do, or you don’t.”
Peters pushed back, saying Hegseth had ignored the substance of his critique. “If you listened to my comments, you would have heard me say how amazing our warfighters are,” he said. “I use the word failure to describe their leaders. You, sir, are the failure, not the men and women who are on that frontline… Their leaders have failed them.”
He accused the administration of lacking a “winning strategy,” adding: “You don’t have a long‑term plan to actually win this war. The men and women are going to be able to do it, but they need to have leadership. When will you show leadership?”
Hegseth fired back: “When are you going to show some leadership and stand up for your fellow Democrats who won’t fund the troops… You want to stand up here and talk about the troops, but you won’t show any political courage to actually fund our department because you have Trump Derangement Syndrome.”
Peters responded that the issue was not funding but direction. “You have trillions — you’re asking for $1.5 trillion. It’s not a question of money. It’s a question of leadership and understanding what it takes to actually win.”
This is a breaking news story. Updates to follow.
Contact Newsweek editors on this story: Gabe Whisnant and Dave Siminoff.
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