Trump administration seeks billions in military funding in wake of Iran war

The White House is seeking $200bn (£150bn) more in funding for the war in Iran, with President Donald Trump saying on Thursday its decision to ask Congress for the additional funds was based on a variety of factors.

Earlier, a Trump administration official told the BBC that the defence department had asked the White House to approve the request.

Asked about the funding on Thursday, Defence Secretary Pete Hegseth did not directly confirm the number, but told reporters: "It takes money to kill bad guys".

Later, at a White House event, Trump was asked why so much money was needed given that he has said "Operation Epic Fury" would end soon, and he said it was a "very volatile war".

He then said said the administration "was asking for a lot of reasons" including for military equipment.

"We are being very judicious," he said.

"We want to have vasts amounts of ammunition, but it was taken down by giving so much to Ukraine," he added, referencing US military aid to Ukraine for the war against Russia.

Congress has approved $188bn in funding for Ukraine since the Russian invasion in February 2022, and about $110bn had been spent as of last December, according to the special inspector general providing oversight of the funding.

Trump's economic adviser Kevin Hassett said on Sunday that the war in Iran had already cost the US $12bn.

"I think right now we've got what we need," he told CBS on Sunday.

On Thursday, Hegseth said the department needed more money for "what we may have to do in the future" as well as making sure that ammunition was refilled.

"This kind of funding bill is going to ensure that we're properly funded going forward," he said.

The $200bn request comes in addition to the defence department's annual budget of $838.7bn, which was approved by Congress in January.

Asked about the $200bn figure, Republican House Speaker Mike Johnson said he was sure it was "not a random number".

"Obviously it's a dangerous time in the world, and we have to adequately fund defence, and we have a commitment to do that," he said.

Democratic Representative Jim Himes said on Thursday that, in regards to the funding request, he wanted Hegseth to "remember that old saying".

"If you want me there for the landing, make sure I'm there at the takeoff," he said.

The war has had other economic impacts in the US. On Wednesday, the US central bank voted to hold interest rates steady again, as a spike in oil prices since the start of the US-Israel war with Iran has raised economic uncertainty and threatened to drive up inflation.

The Fed typically lowers interest rates when it sees unemployment rising and wants to boost the economy. It raises them when it is worried about inflation, hoping higher borrowing costs will ease spending and slow down price rises.

Hegseth's request, which has yet to be confirmed by the White House, will set up a bruising legislative fight less than eight months from November's midterm congressional elections.

While military funding tends to garner bipartisan support, polls suggest a majority of the US public does not approve the war in Iran – and politicians will be pressed to justify the massive spending increase that is being required.

Democrats have been quick to attempt to put the size of this military spending package in context.

The one-year extension of health insurance subsidies they unsuccessfully fought for last year, for instance, was estimated to be $35bn. The administration had previously said that the total savings from last year's Department of Government Efficiency (Doge) budget cuts – which included massive reductions in US foreign aid – totalled $175bn. Last year, the federal government spent $100bn for food aid for lower-income families.

In the end, Republicans in Congress should have the votes to push through the extra funding – but it could come at a steep political price if the war, and the economic disruption that has come with it, drag on.

Pentagon officials have said US action in Iran could last anywhere from four to six weeks. The conflict has lasted almost three weeks so far.