2026-08-2834brief

Iran war’s $35.7 billion cost—over half the Pentagon’s $67 billion emergency request—pushes the Navy to shift money from payroll

A Pentagon memo warns of payroll shortfalls; the Navy says pay and readiness obligations are being met.

Defense Secretary Pete Hegseth gave Congress the $35.7 billion war-cost figure; the administration later asked for $67 billion in emergency defense funds. A Pentagon memo says combat funding created payroll shortfalls, while a Navy official and contractor said money was shifted from payroll and nonemergency shore maintenance was deferred. The Navy says it is meeting pay obligations and denies that maintenance and operations funds are depleted.