The Trump administration has proposed a record $1.5 trillion U.S. defense budget for fiscal year 2027 as military operations against Iran continue to drive up costs. At the same time, the Pentagon is facing an immediate funding shortfall while Congress remains deadlocked over a $67 billion emergency spending request.

Pentagon Faces Funding Pressure

According to The Washington Post, the Department of War is experiencing financial strain as military operations against Iran expand. U.S. officials told the newspaper that budget constraints have forced the Pentagon to scale back some military training exercises, raising concerns about troop readiness.

The report added that renewed fighting following the collapse of the U.S.-Iran ceasefire could further increase defense spending requirements, particularly after four U.S. service members were killed in Iranian attacks within one week.

Congress Stalls Emergency War Funding

The White House has asked Congress to approve $67 billion in emergency funding to cover operational costs related to the conflict. However, lawmakers have yet to reach an agreement.

With the House of Representatives expected to begin a month-long recess on Thursday, any decision on the supplemental funding package is likely to be delayed for several weeks.

Pentagon Seeks Budget Flexibility

According to an internal Pentagon document cited by The Washington Post, the War Department has also requested congressional approval to reallocate $4.3 billion from training and procurement accounts to meet urgent operational needs. Congress has not yet acted on the request.

Sean Parnell, spokesperson for War Secretary Pete Hegseth, said the Pentagon would take all necessary measures to maintain military readiness.

Record Defense Budget Proposed

The United States currently allocates roughly $1 trillion annually to defense. The Trump administration's proposed $1.5 trillion budget for fiscal year 2027 would mark a significant increase in military spending and is expected to face extensive debate in Congress.

Joint U.S. and Israeli military operations against Iran have continued since late February, with President Donald Trump repeatedly saying he expects the conflict to end within weeks.