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U.S. Military Operations in Iran: Cost Estimates, Budget Proposals, and Congressional Scrutiny

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Conflicting Costs, a $1.5 Trillion Budget, and a War Without Authorization: The State of Play

A series of congressional hearings and official statements have revealed a wide gap between government estimates and internal assessments of the cost of ongoing U.S. military operations in Iran. Simultaneously, the Trump administration has proposed a massive defense budget increase for fiscal year 2027, sparking intense debate over national priorities, fiscal responsibility, and the trade-off between defense and domestic spending.

The Price of "Operation Epic Fury"

Official and unofficial estimates for the cost of the U.S. military operation in Iran have varied significantly over time, creating confusion on Capitol Hill.

Official Government Estimates (Pentagon)

  • First Six Days: The Pentagon informed Congress that the initial phase of the conflict cost an estimated $11.3 billion.
  • First Two Days: A separate figure indicated approximately $5.6 billion was spent on munitions alone during the initial airstrikes that began on February 28.
  • Cost Near 60-Day Mark: Pentagon Comptroller Jules Hurst III testified before the House Armed Services Committee that the total cost to date was approximately $25 billion, encompassing munitions, operations, maintenance, and equipment replacements.
  • Revised Public Estimate: The Pentagon later revised its estimate to $29 billion, attributed to "updated repair and replacement of equipment cost and also just general operational cost."

"That is low. I am certain that that is low." — Senator Chris Coons, on the Pentagon's $25 billion figure.

Unofficial and Higher Estimates

Multiple sources familiar with internal assessments have told media outlets that the true cost is significantly higher, estimating the total could be between $40 billion and $50 billion. This higher figure is said to include the cost of repairing damaged bases (with at least nine U.S. military sites reportedly damaged in a 48-hour period), replacing destroyed assets (such as 24 MQ-9 Reaper drones), and other operational expenses not fully captured in the official figures.

The Pentagon's official $25 billion figure did not include the full cost of repairs to overseas installations, which officials said would be part of a future request.

Context: Daily Costs

  • Harvard University defense budgets expert Linda Blimes estimated the conflict's daily cost at around $2 billion.
  • Experts from Brown University's Cost of War project indicated the cost was in the tens of billions.

Funding the Fight: A $200 Billion Discussion vs. a $87.6 Billion Request

The administration has made several funding requests to Congress to support the military operations and the broader defense budget.

Supplemental War Funding

  • Initial Discussions: The Pentagon informally discussed a funding request of up to $200 billion to support military efforts, increase munitions production, and replenish supplies.
  • Formal Request: The White House submitted a formal supplemental spending request of $87.6 billion. This request was primarily intended to replenish Defense Department funds for the Iran conflict and included:
    • $67 billion for defense (covering munitions, operations, and classified programs)
    • ~$20.6 billion for non-defense items, including economic assistance to farmers, Ebola response, and infrastructure projects.

OMB Director Russ Vought urged Congress to act quickly on the request.

The Fiscal Year 2027 Budget: A $1.5 Trillion Pentagon

The President's budget proposal has set the stage for a major fiscal showdown.

Defense vs. Domestic Spending

  • Defense Spending: President Trump proposed a defense budget of $1.5 trillion for the 2027 fiscal year. This represents an increase of approximately 44% (or about $442 billion) over current levels.
  • Non-Defense Spending: The proposal includes a 10% across-the-board reduction in non-defense discretionary programs.

"This budget... ensures the United States continues to maintain the world's most powerful and capable military. It marks the end of fiscal futility." — Budget Director Russell Vought

Pentagon's Breakdown

The Pentagon's budget request included:

  • Tripling spending on drones and related technology to more than $74 billion
  • Investing over $30 billion in critical munitions
  • A 46% increase for shipbuilding to $65 billion

Domestic Program Impact

The defense increase is funded in part by proposed reductions to programs including:

  • Medicaid
  • Housing assistance (13% cut to HUD)
  • Childcare
  • LIHEAP (Low Income Home Energy Assistance Program)
  • WIC: A provision would reduce a fruit and vegetable benefit for breastfeeding mothers from $52 to $13 per month. Vought stated the WIC program is "fully funded."

Other Budget Items

  • A 13% increase for the Department of Justice for crime-related efforts.
  • A $10 billion fund for construction and beautification projects in Washington, D.C.
  • A $481 million increase for aviation safety and air traffic controller hiring.
  • A proposed 19% cut to the Department of Agriculture.

"This is not going to be a rubber stamp." — Representative Betty McCollum (D-MN)

Presidential Stance

President Trump defended the spending request as necessary due to a "volatile world," arguing that military investments are a priority. He suggested that programs like day care, Medicaid, and Medicare could be managed by states.

Congressional Reaction and the Bigger Picture

The various funding proposals and the conduct of the war have been subjects of significant disagreement in Congress, occurring against a backdrop of massive national debt.

War Authorization and Strategy

  • No Authorization: The conflict has not been formally authorized by Congress. Several war powers resolutions seeking to halt the conflict have failed in the Senate and the House.
  • Strategy Questions: Lawmakers from both parties have questioned the administration's strategy. Senator Susan Collins sought a defined strategy for ending the war, while Representative Rosa DeLauro stated the administration had not presented a "clear or coherent strategy."

Defense Secretary Pete Hegseth denied the conflict is a "quagmire," calling it an "existential fight" and accusing critics of handing "propaganda to our enemies."

Stockpile and Economic Concerns

  • Stockpiles: A senior advisor at CSIS noted it would take "several years" to replenish munitions. Hegseth stated the military has "plenty of what we need."
  • Economic Impact: The American Enterprise Institute estimated the conflict translates to an extra $150 per month per U.S. household due to higher fuel and fertilizer costs.

Fiscal Context

  • The U.S. national debt is reported to be near $39 trillion.
  • The Congressional Budget Office (CBO) forecasts a federal deficit of approximately $1.9 trillion for the current fiscal year, prior to any supplemental spending.
  • The CBO and the Kaiser Family Foundation estimated that the "One Big Beautiful Bill" enacted last year could result in 15 million to 17 million Americans losing health care coverage.

"This is a morally bankrupt budget." — Senator Patty Murray (D-WA)

Casualties and Military Operations

Casualties

  • Iran: The Iranian Red Crescent Society reported that Israeli and American strikes have killed over 1,200 people in Iran.
  • Israel: Thirteen people have been reported killed in Israel.
  • Lebanon: The Lebanese prime minister’s office reported 570 deaths in Lebanon.
  • U.S. Military: 14 U.S. service members have died, and 140 have been wounded.
  • Other: Six people were reported killed in the United Arab Emirates.

Military Actions

  • The campaign began on February 28 with airstrikes conducted by the U.S. and Israel.
  • The U.S. has reported eliminating 16 Iranian minelayers and naval vessels near the Strait of Hormuz.
  • The conflict has led to significant disruption of global energy markets and transportation systems.
  • A fragile ceasefire is currently in place, but President Trump stated it is on "massive life support."
  • Defense Secretary Hegseth stated that over 7,000 targets have been struck across Iran and that the military has a plan to "escalate if necessary" or "retrograde if necessary."