The Pentagon’s ongoing operations against Iran are beginning to strain military budgets, forcing some branches to cut back on training and maintenance while senior military leaders push Congress for additional funding.
Top uniformed officials have warned lawmakers that costs tied to the conflict are disrupting routine operations and worsening existing readiness concerns. Navy Adm. Daryl Caudle stated during a recent hearing before the House Armed Services Committee that the Navy’s 2026 budget “didn’t bake in [Operation] Epic Fury,” leaving the service scrambling to absorb mounting expenses. He noted the financial pressure is already affecting “routine operations,” including training exercises, flight hours, and programs for new recruits. Caudle added that without additional funding to move individuals from boot camp and pay enlistment bonuses, “my record recruiting is going to be thwarted.”
The Army has also begun scaling back spending. According to an internal document released in late April, the Army’s III Armored Corps—a Texas-based headquarters overseeing roughly 70,000 troops and hundreds of tanks—lost nearly $292 million from its training budget. In a separate action, the Army’s medical training center canceled dozens of courses and ended centralized funding for others, as detailed in an April 27 memo.
Military funding is typically divided into specific accounts authorized by Congress. Training and readiness activities are generally funded through the operations and maintenance account (O&M). Todd Harrison, a defense budget expert at the American Enterprise Institute, explained that O&M covers deployments, fuel, travel, repairs, training, and some civilian salaries. While outside analysts cannot track Pentagon spending in real time, Harrison confirmed the reported cuts are plausible given the conflict’s scale: “It’s completely plausible they’re making tradeoffs like canceling unessential travel or training.”
The budget strain intensifies as the total cost of the Iran campaign climbs. Acting Pentagon Comptroller Jules “Jay” Hurst III estimated the conflict at roughly $29 billion in May, though he acknowledged this figure excludes rebuilding damaged bases. Sources indicate the actual price tag likely exceeds $40 billion to $50 billion. Early discussions within the Trump administration considered requesting supplemental funding as high as $200 billion, but officials later deemed it excessive with no formal request submitted to Congress.
A defense official familiar with budget processes noted that while military funding challenges typically emerge near fiscal year end in September, this year’s pressures surfaced months earlier due to rising operational costs tied to Iran operations. Air Force Gen. Kenneth Wilsbach warned the conflict has intensified readiness problems across the force, and lawmakers have increasingly pressed War Department Secretary Pete Hegseth to submit a supplemental funding request. Rep. Ken Calvert, R-Calif., chairman of the House Appropriations Committee’s defense subpanel, emphasized: “We need to repay those O&M accounts that are going to be used in order to pay for this ongoing operation.”
Harrison cautioned that long-term effects could extend beyond immediate shortfalls, noting increased wear and tear on military equipment may create growing maintenance challenges years ahead. He also stressed supplemental funding would help replenish the Pentagon’s dwindling stockpiles of air defense and offensive missiles.
