The Guardian: Iran War Pushes US Navy Toward Funding Crisis as War Costs Mount

By Staff, Agencies

The US war on Iran has triggered a serious financial strain within the armed forces, with the US Navy reportedly diverting funds originally allocated for payroll to cover ongoing combat expenses, The Guardian reported Thursday, citing internal Pentagon documents.

According to the report, military operations and the maintenance of a naval blockade have depleted ammunition stockpiles and pushed the Navy close to exhausting available funds.

“The money for payroll … was robbed to pay for overseas contingencies and is being backfilled by money that hasn't been spent,” a US Navy official was quoted as saying, adding that the funds were being restored to ensure personnel received their paychecks.

The Guardian reported that the Navy’s 2026 budget, estimated at about $300 billion, did not account for the costs of the war against Tehran.

The additional spending has intensified pressure on available funds as the Navy continues war and maintains its blockade, while ammunition and other resources are being consumed faster than anticipated.

Meanwhile, the White House has requested a $67 billion emergency funding package to cover additional military expenses, but The Guardian reported that the prospects of congressional approval remain uncertain.

A funding shortfall could further complicate Washington’s efforts to sustain its war against Iran while maintaining war commitments elsewhere.

In April, the Center for Strategic and International Studies warned that the US could face a critical shortage of precision-guided missiles in future large-scale conflicts as its existing arsenal is depleted.

In late July, the Pentagon requested $67 billion in emergency funding for the current fiscal year, including $18.2 billion to replenish advanced Patriot missiles, Navy Tomahawks and the Army’s THAAD interceptors, according to documents sent to congressional defense committees.

The previously undisclosed breakdown includes $5.75 billion for THAAD interceptors, $5.57 billion for Patriot Missile Segment Enhancement models, $1.9 billion for SM-6 missiles and $3.28 billion for three versions of the Navy’s RTX Corp. Standard Missile interceptor family.

The request also includes $100 million for a classified Lockheed Martin air-to-air weapon, the Joint Advanced Tactical Missile, which has not yet been fielded.

Bloomberg reported that the US fired 13,629 munitions at Iranian targets between the start of the war on February 28 and the April ceasefire. Joint Chiefs of Staff Chairman Dan Caine has privately warned that renewed major war against Iran could dangerously deplete interceptor supplies available to US Central Command.