The Pentagon has spent at least $33.4 billion on Operation Epic Fury, the ongoing conflict with Iran, by drawing from accounts intended for military training and maintenance, according to the department’s inspector general. This spending comes despite Congress never approving a specific appropriation for the war, and as a $67.1 billion supplemental funding request from the White House remains stalled.
The core tension centers on the Pentagon’s use of funds meant for day-to-day operations to cover war costs, potentially delaying weapons modernization and other military priorities.
This development highlights a broader pattern of U.S. military operations being funded through reprogramming and stopgap measures while Congress debates supplemental requests. The stakes include military readiness, transparency in war spending, and the impact on other defense programs.
Rising Costs and Funding Gaps
The inspector general’s first report on Operation Epic Fury, covering spending through June 30, found that the Pentagon has paid for the conflict by dipping into its base budget. The $33.4 billion figure excludes infrastructure repairs and economic fallout. A separate Congressional Budget Office (CBO) estimate released Tuesday put the cost at $38.1 billion through August 1, with the war running $2 billion to $3 billion per month. Both figures are below the $67.1 billion in supplemental funding requested by the White House, though CBO found only $42.3 billion of that request was directly related to the conflict.
The Pentagon has asked to move money between accounts to bridge the gap, a step defense budget analysts warn could delay weapons modernization. Elaine McCusker, a senior fellow at the American Enterprise Institute and former acting Pentagon comptroller, said the department is covering costs through reprogramming requests that will "likely cause modernization delays" and by "deferring or delaying activities funded" by operations and maintenance funds, including facilities maintenance, depot repairs, and some training.
"The department is covering costs through reprogramming requests that will likely cause modernization delays, and by deferring or delaying activities funded by operations and maintenance funds, including facilities maintenance, depot repairs and, likely, some training."
— Elaine McCusker, former acting Pentagon comptroller
Congressional Scrutiny and Department Response
Congress has not approved the $67.1 billion supplemental request sent by the White House on June 24. A stopgap measure signed September 2 funds the government through December 11 at roughly current levels, leaving the Pentagon to continue paying for the war from existing accounts. Cost estimates have climbed across successive hearings, from $25 billion in April to $37.5 billion when Secretary of War Pete Hegseth testified before the Senate Appropriations Committee on July 21.
Democrats on the Appropriations Committee have argued that the department does not need additional funds, pointing to over $100 billion in unspent funding from an earlier reconciliation bill. Senators Dick Durbin, Jeanne Shaheen, and Chris Coons pressed Secretary Hegseth on why he was seeking another $67 billion while roughly $75 billion from an earlier package remained unobligated. Hegseth responded that the funds were already committed to rebuilding priorities neglected by the previous administration, including the Golden Dome missile-defense program and hypersonics, and said 95% of those funds would be allocated by the end of September.
A senior War Department official disputed the inspector general’s findings, saying the office "did not have access to all relevant information" and calling any suggestion that U.S. munitions are depleted "completely false." However, the inspector general reported that the operation "resulted in strategic inventory shortfalls and revealed industrial base bottlenecks for munitions resupply," citing the department’s acquisition and sustainment office.
Classified Funding and Transparency Concerns
Part of the White House’s June 24 request includes $12.1 billion for unspecified classified programs, a line item larger than the fuel, drone, and readiness requests combined. The CBO noted that previous wars in Iraq and Afghanistan "have not included such a large proportion of classified funding." The budget office also reported that the Department of War "did not respond to CBO's requests for information," leaving analysts to rely on public data.
As of late August, the inspector general counted at least 18 U.S. service members dead in the conflict, and cost estimates continue to rise. The department’s reliance on base budgets and reprogramming, combined with the lack of congressional approval for supplemental funding, has raised concerns among lawmakers and analysts about long-term impacts on military readiness and transparency in war spending.
