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President Donald Trump’s Iran war has left the U.S. military cash-strapped, forcing the Pentagon to divert funds from training and weapons purchases to plug the gaps, according to a report.

Secretary of Defense Pete Hegseth is sure to be grilled about the funding crunch by lawmakers Tuesday to explain why his department requires $67 billion when he goes in front of the Senate Appropriations Committee.

The Pentagon is facing the “urgent budget shortfall” largely due to the war in Iran, which has flared up again in recent weeks as both sides exchanged fresh strikes, The Washington Post reports.

“Military exercises and trainings that help keep units prepared for combat are being limited or canceled,” the newspaper reports, citing current and former Pentagon officials, while the budget for equipment and facility and maintenance “is also being drained to cover the shortfalls.”

The Pentagon recently sought permission from Congress to reallocate $4.3 billion from training and weapons purchases “to address more urgent priorities,” according to a document the outlet obtained.

President Donald Trump’s Iran war has left the U.S. military cash-strapped and having to divert funds from training and weapons purchases, according to a report. It comes ahead of Defense Secretary Pete Hegseth’s testimony in front of the Senate Appropriations Committee (Getty)

In addition, the conflict in Iran has reportedly put an “unexpected” strain on the Navy and Air Force, with parts of the 2026 budget due to run out by the end of the month, two congressional aides told the Post. The timing is all the more urgent given the House is due to go on a month-long recess on Thursday.

“Funding our military is not optional — it is essential,” Chief Pentagon spokesman Sean Parnell said in a statement to The Independent. “Secretary Hegseth has prioritized the needs our of military and our warfighters unlike any of his predecessors. He will do whatever is necessary to protect their quality of life and ensure our military remains the most dominant force is the world.”

Experts warned two months ago that the U.S. faces a critical three-year timeline to replenish key weapon stockpiles heavily depleted by the Iran war.

The weapons systems in question include Tomahawk cruise missiles, designed for deep strikes into enemy territory, and Patriot and THAAD interceptors, crucial for defending against incoming missiles and drones, according to the Center for Strategic and International Studies.

The Pentagon is facing an ‘urgent budget shortfall’ largely due to the conflict in Iran, which has flared up again in recent weeks as both sides exchanged fresh strikes (US Centcom)

While the U.S. possesses sufficient munitions for any plausible scenario in the Iran war, the current depleted inventories have created a “window of vulnerability” should a conflict arise in the Western Pacific, the analysis said.

While Hegseth said concerns over weapons stockpiles were “a manufactured story” in an interview with CBS last month, Pentagon officials have privately expressed “far greater anxiety” on the matter, according to the Post.

The funding gap comes as the conflict in Iran has ratcheted up, with both sides launching fresh bombing campaigns over the last 10 days, and as Tehran and Washington are now stuck in a state of limbo, U.S. intelligence officials reportedly briefed the Trump administration.

Three U.S. service members were killed in the recent strikes, while nearly 100 have suffered injuries since July 7, the Pentagon said. At least 17 service members have been killed since fighting broke out on February 28.

Trump warned that Iran would “pay” for the killing of U.S. soldiers as Tehran warned its “missiles and drones will rain down on American criminals.”