What Hegseth’s $37.5 billion estimate reveals about the cost of the Iran war

Latest cost comes as Hegseth and Joint Chiefs of Staff Chairman Caine ask for $1.5 trillion budget, including $70bn for Iran war.

4 min readJul 22, 2026 10:58 AM IST First published on: Jul 22, 2026 at 04:57 AM IST
Senate DefenseDefense Secretary Pete Hegseth testifies at a Senate Appropriations Committee hearing. (Photo: AP)

United States Secretary of Defense Pete Hegseth has put the latest official price tag on the US-Israel war on Iran at $37.5bn.

Hegseth confirmed the figure during a hearing before the Senate appropriations committee on Tuesday, in which he and Chairman of the Joint Chiefs of Staff Dan Caine were questioned about their request for a $1.5 trillion US defence budget, including nearly $70bn for the war with Iran.

What did Hegseth tell the Senate

Hegseth said the extra war money is needed right away and called it a key part of President Donald Trump’s $1.5 trillion defence budget plan. He said the department will run into money problems without it. Protesters interrupted his opening remarks several times.

The hearing came just days after the Pentagon said three more American service members had died in the conflict, taking total deaths to 17, with more than 100 people hurt since early July.

Why are Democrats worried

Sen. Patty Murray, the top Democrat on the panel, said, “This war is now spiralling out of control again,” AP reported. She noted that Trump has repeatedly said a deal was close and the war would end soon, yet the administration is now asking for $70 billion more.

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Senate Defense
Sen. Patty Murray, D-Wash., arrives before Defense Secretary Pete Hegseth and Chairman of the Joint Chiefs of Staff Gen. Dan Caine attend a hearing of the Senate Appropriations Committee. (Photo: AP)

Sen. Jeanne Shaheen questioned why more money was needed when the Pentagon has not yet spent about half of the $150 billion Congress gave it last year. Hegseth replied that the rest of that money would be used by September.

What happened during the hearing

The session turned heated at several points. Gen. Dan Caine, the top US military officer, said he could not say what the war would ultimately cost, since the enemy also has a say in how things unfold.

Senators also pressed officials on whether Iran might start charging fees for ships passing through the Strait of Hormuz, a route long used freely for oil shipments, but did not get a clear answer.

Senate Defense
Chairman of the Joint Chiefs of Staff Gen. Dan Caine testifies at a Senate Appropriations Committee hearing. (Photo: AP)

Later in the hearing, Sen. Gary Peters said the government’s war plan had failed, and Hegseth pushed back sharply, telling Peters he was making “campaign commercials,” according to AP. Peters replied that Hegseth himself was the failure, not US troops, and said the government has no long-term plan to win the war.

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Senate Defense
Sen. Gary Peters, D-Mich., questions Defense Secretary Pete Hegseth at a Senate Appropriations Committee hearing. (Photo: AP)

The Senate is due to vote this week on another resolution aimed at limiting the president’s war powers, after nearly a dozen earlier attempts. Republicans are pushing a $95 billion budget package through Congress using a process that lets the majority pass it without Democratic votes, the same method used for other recent bills. The plan also includes money for farmers hit by tariffs and for changes to voting laws.

AP reported that most Americans disapprove of how Trump is handling the Iran war, citing an AP-NORC poll, while petrol prices have risen as Iran seeks to control oil shipments through the Strait of Hormuz.

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