US Defense Secretary Hegseth Testifies on Iran War Costs Before Congress

Defense Secretary Pete Hegseth testified before the House Armed Services Committee on Wednesday about the US war on Iran that began February 28, with the Pentagon claiming $25 billion in costs covering munitions and operational expenses. Democratic lawmakers and economists sharply dispute this figure, with Representative Ro Khanna estimating $631 billion in total economic costs and Harvard economist Linda Bilmes predicting the war could reach $1 trillion when including veterans' care, infrastructure repairs, and weapons restocking. The conflict has killed at least 3,375 people according to Tehran's Ministry of Health and 14 US service members, while gas prices have surged 40 percent to $4.23 per gallon and Iranian strikes have damaged multiple US military bases across the Middle East. The Trump administration has requested a $1.5 trillion defense budget for next year, representing a 42 percent increase and the largest military spending expansion since World War II, as President Trump's approval rating on cost of living has fallen to just 22 percent.

Pentagon's official war cost estimate and Congressional testimony

• ▪The Trump administration has asked for a $1.5 trillion defense budget for next year
• ▪The Pentagon's estimated $25 billion figure only reflects the costs of munitions expended and other operational costs of the US war on Iran
• ▪Pentagon officials told Congress in March that the US war on Iran cost $11.3 billion in the first six days
• ▪The Trump administration initially requested $200 billion for the US war on Iran
• ▪The Pentagon's $25 billion estimate for the US war on Iran largely covers munitions and equipment maintenance
• ▪Jay Hurst told the House Armed Services Committee's top Democrat Adam Smith about the estimated $25 billion figure for the US war on Iran
• ▪The Pentagon told the House Armed Services Committee that the US had spent $25 billion on its war on Iran

Broader economic impact on American households and gas prices

• ▪Representative Ro Khanna claimed the US war on Iran would cost about $631 billion to the US economy due to increased gas and food prices
• ▪Only 22 percent of Americans approved of Donald Trump's handling of the cost of living according to a Reuters/Ipsos poll
• ▪Gas prices in the US have hit $4.23 a gallon, the highest since 2022
• ▪Representative Ro Khanna stated the US war on Iran would cost about $5,000 per household

Damage to US military infrastructure and reconstruction costs

• ▪Each Patriot missile in the US defense system costs $4 million
• ▪The New York Times estimated that repairs to the US Navy Fifth Fleet headquarters in Bahrain could cost $200 million alone

Long-term financial burden and historical cost underestimation

• ▪Harvard economist Linda Bilmes has predicted that the total cost of the US war on Iran could amount to $1 trillion
• ▪The George Bush administration told the US public that the Iraq war would cost $50 billion
• ▪Linda Bilmes and Joseph Stiglitz estimated in February 2006 that the Iraq war would cost the US more than $1 trillion