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Aug 28, 2026 3:02 PM

The US Navy is shifting money from payroll and other accounts to sustain the war against Iran, as funding shortages raise.

The US Navy is shifting money from payroll and other accounts to sustain the war against Iran, as funding shortages raise the prospect of cuts to routine operations, The Guardian has reported

Financial strains have delayed some non-emergency maintenance at shore facilities, according to a navy official and a contractor.

The service disputed claims that its operations and maintenance accounts had run out of money.

A spokesperson said resources were being managed to meet payroll obligations and preserve operational capabilities.

Chief of Naval Operations Adm. Daryl Caudle warned Congress that, without additional funding, the navy could be forced to scale back exercises and regular missions to sustain the war effort. 

The pressure stems from a conflict that was not factored into the US Navy’s nearly $300 billion budget for this year.

Since operations against Tehran began in February, the service has helped conduct strikes and enforce an extensive naval blockade in the Strait of Hormuz, driving up spending on personnel, weapons, and fleet operations.

Experts and former officials told The Guardian that some accounts were running low and warned that financing an open-ended war without a clear exit strategy had become the service’s central challenge.

Emergency Funding

Defense Secretary Pete Hegseth told lawmakers in July that the war had already cost $35.7 billion, although it remains unclear whether that figure covers all related expenses.

The same month, US President Donald Trump’s administration requested nearly $88 billion in supplemental funding, including $67.1 billion to cover Department of Defense costs related to the war with Iran. 

Securing congressional approval is complicated by the fact that lawmakers never authorized the conflict.

That does not prevent Congress from financing the war, but it has fueled opposition to providing additional funds.

Democratic Sen. Patty Murray, vice chair of the Senate Appropriations Committee, said that “instead of bankrolling the president’s war or sending ICE $70 billion,” lawmakers could “quadruple our investments to cure cancer, or help families afford child care, or help them afford to cool their homes.” 

Earlier this year, the House of Representatives passed a broader $1.15-trillion defense bill and separate legislation authorizing $73 billion for the war in Iran.

Neither measure has completed the legislative process.

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