According to a report by The Guardian, Donald Trump’s war on Iran has pushed the U.S. military into a serious financial crisis. The navy has reportedly been forced to draw on payroll accounts and other internal funds to meet the rapidly rising costs of combat operations. Internal Pentagon memos caution that the diversion of resources is creating “shortfalls in payroll,” while navy officials and defense contractors say that non-emergency maintenance has been postponed as the service struggles to manage the cash shortage.
The delays could affect routine repairs, equipment readiness, and other activities that support long-term military operations.The U.S.–Israeli campaign has reduced munitions stockpiles and triggered retaliatory Iranian strikes that damaged military bases across the Middle East, adding further strain to already pressured defense budgets.
Analysts say the navy’s $300bn budget for 2026 was not structured to absorb the extraordinary expenses associated with “Epic Fury,” the war launched in February. Those costs include combat operations, replenishing weapons, repairing damaged facilities, and maintaining forces deployed throughout the region.
Emergency funding requests to Congress face uncertain prospects, particularly as opposition to the war grows and lawmakers question how it is being conducted.Adm. Daryl Caudle, chief of naval operations, warned lawmakers in May that the financial crisis would become apparent by July. He said the navy might have to make difficult decisions about exercises, deployments, training, and routine operations in order to preserve funding for immediate combat needs.
Defense Secretary Pete Hegseth testified that the war has cost $35.7bn so far, although the full financial accounting remains unclear and could change as additional expenses are identified. The administration has asked Congress for $67bn in emergency funds, but lawmakers have been reluctant to approve the request without a formal authorization of force.Within the service, officials acknowledge the severity of the shortage but generally avoid discussing it publicly.
Their reluctance reflects the sensitivity of revealing financial and readiness problems while military operations remain underway. As the conflict continues, the navy faces the challenge of sustaining current combat demands while preserving the funding needed for maintenance, personnel costs, training, and future preparedness.
Todd Harrison of the American Enterprise Institute said civilian leaders at the Pentagon are intentionally minimizing the severity of the problem because acknowledging it openly could carry political costs. Retired naval officer Harlan Ullman offered an especially stark assessment, saying, “The piggy bank is broken.”
A navy contractor was even more direct: “They’re fucked. They shot all their weapons; they trashed all their ships; they ran out of their money.”Trump has frequently likened himself to Theodore Roosevelt, promoting the vision of a “Golden Fleet” and proposing ambitious “Trump class” battleships intended to project American power.
But behind that rhetoric is a navy struggling to finance a war without a clear endgame. As combat operations continue, officials are being forced to move money from one account to another simply to keep paychecks flowing, leaving less flexibility for maintenance, replenishment, training, and future operations.
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