The United States is requesting a $1.5 trillion defense budget for fiscal year 2026-27 as its war with Iran continues [1].

This request comes as the conflict strains U.S. military readiness and creates broader economic pressure, including a second wave of inflation affecting consumer prices beyond gasoline [4].

Defense Secretary Pete Hegseth said the U.S. has spent at least $29 billion in the 74 days of the war [2]. The conflict, which has lasted approximately nine and a half weeks, has involved U.S. strikes on Iranian missile launch sites and boats [3].

President Donald Trump said three U.S. Navy destroyers passed through the Strait of Hormuz under fire, but none were hit. The U.S. government has characterized these operations as acts of self-defense, while Iran has asserted a legitimate right to respond to any cease-fire violations.

Despite the request for a massive budget increase, the Pentagon is already facing operational hurdles. An unnamed Pentagon spokesperson said the military is feeling the financial squeeze and struggling to carry out routine training and maintenance amid the war with Iran. This has led to canceled trainings, and delayed maintenance for some equipment.

Recent reports indicate the U.S. and Iran may be nearing an agreement to end the hostilities. President Trump said there have been good talks and that Iran is expected to respond to a U.S. peace proposal today.

“"We have spent at least $29 billion in the 74 days of this war."”

The scale of the FY 2026-27 budget request reflects the high cost of sustained kinetic operations in the Middle East. By linking immediate spending needs to long-term budget increases, the Pentagon is signaling that the conflict has exhausted existing reserves, potentially shifting U.S. fiscal priority toward active warfare and away from routine fleet maintenance and readiness training.