The Pentagon’s expanding military operations against Iran are now creating serious budget pressures across multiple branches of the U.S. armed forces, forcing reductions in training, maintenance, and personnel programs while military leaders warn Congress that readiness could deteriorate further without emergency funding.
According to a new CNN report, senior military officials have privately and publicly acknowledged in recent weeks that the cost of the conflict is beginning to disrupt routine military operations. What initially appeared to be a manageable campaign is now consuming billions of dollars at a pace that current Pentagon budgets were never designed to absorb.
Navy Adm. Daryl Caudle delivered one of the clearest warnings during testimony before the House Armed Services Committee earlier this month. Caudle said the Navy’s 2026 budget had not accounted for the growing costs associated with Operation Epic Fury, leaving the service scrambling to redirect funds from other priorities.
The financial strain is already hitting core operational areas. According to Caudle, the Navy has started pulling back on training exercises, reducing flight hours, and facing potential setbacks in recruiting and retention efforts.
“My record recruiting is going to be thwarted without additional funding to move those individuals from boot camp and to pay enlistment and reenlistment bonuses,” Caudle told lawmakers.
The Army is facing similar pressures. Internal documents reviewed by CNN reportedly show that the Army’s III Armored Corps, headquartered in Texas and overseeing roughly 70,000 troops along with hundreds of tanks and armored vehicles, lost nearly $292 million from its training budget in late April alone.
At the same time, the Army’s medical training center canceled dozens of courses and eliminated centralized funding for others as military planners searched for ways to offset escalating war costs.
The Pentagon’s budgeting system limits flexibility in moments like this. Congress allocates military funds into highly specific categories, making it difficult for defense officials to simply move money between accounts without legislative approval. Most training, maintenance, and readiness programs fall under the operations and maintenance account, commonly referred to as O&M.
Todd Harrison, a defense budget specialist at the American Enterprise Institute, said the O&M account covers an enormous range of military functions, including fuel, repairs, travel, deployments, training operations, and portions of civilian payroll expenses.
While outside analysts do not have access to the Pentagon’s full real-time spending data, Harrison said the reported budget cuts are entirely believable given the scale and intensity of the Iran campaign.
“It’s completely plausible that they are having to make some tradeoffs and do things like cancel unessential travel or cancel training,” Harrison said.
The cost estimates themselves continue to climb. Acting Pentagon Comptroller Jules “Jay” Hurst III told lawmakers earlier this month that official estimates place the conflict at roughly $29 billion so far. But even that number excludes major rebuilding expenses tied to damaged bases and infrastructure.
Other defense sources told CNN the true cost may already range between $40 billion and $50 billion, with additional expenses likely as operations continue.
Early in the conflict, Trump administration officials reportedly discussed requesting supplemental defense funding that could reach as high as $200 billion, though officials later backed away from that figure and no formal request has yet been submitted to Congress.
Normally, military funding pressures become most severe near the end of the fiscal year in September, when Pentagon officials often seek congressional approval to transfer money between budget accounts. This year, however, the strain is appearing months earlier due to the rapid pace of wartime spending.
Air Force Gen. Kenneth Wilsbach warned senators last week that the conflict is worsening readiness issues that already existed before operations against Iran began.
Lawmakers from both parties are now pressuring War Department Secretary Pete Hegseth to formally request supplemental funding to stabilize military accounts before broader operational problems emerge.
Rep. Ken Calvert, chairman of the House Appropriations defense subcommittee, said Congress may soon need to replenish the Pentagon’s depleted operations and maintenance budgets to prevent deeper disruptions.
Defense analysts also warn that the long-term consequences may extend far beyond immediate spending shortages. Increased use of aircraft, armored vehicles, missile systems, and air defense platforms accelerates wear and tear across the force, potentially creating years of additional maintenance demands even after active operations slow down.
At the same time, heavy missile expenditures are reportedly draining stockpiles of air defense interceptors and offensive weapons, raising new questions about how quickly the United States can replenish critical munitions reserves while sustaining an extended overseas conflict.
