‘Plenty Of Money’: US Says It Can Absorb Iran War Costs Without Raising Taxes

Last Updated:March 22, 2026, 10:05 PM IST

Scott Bessent says the United States can fund its war with Iran but seeks 200 billion supplemental from Congress for future readiness amid resistance in Congress.

US Treasury Secretary Scott Bessent. (image: AP)

The United States has sufficient funds to sustain its ongoing war effort against Iran, but is seeking additional “supplemental” funding from Congress to ensure long-term military readiness, US Treasury Secretary Scott Bessent said on Sunday.

Speaking on NBC’s Meet the PressBessent emphasised that the request is aimed at strengthening future preparedness rather than addressing any immediate funding shortfall.

“We have plenty of money to fund this war. This is supplemental,” he said, adding that President Donald Trump wants to ensure the military remains “well supplied going forward.”

The proposed request, reportedly around $200 billion, has already triggered resistance in Congress. Lawmakers, including Democrats and some Republicans, have questioned the need for additional funds, pointing to already high defence spending approved in recent years.

Notably, the Trump administration has yet to formally submit the funding request to Congress, and officials have indicated that the final amount could still change.

Backing the move, Defense Secretary Pete Hegseth said the additional funding is necessary “to ensure that we’re properly funded for what’s been done, and for what we may have to do in the future.”

Bessent also firmly ruled out any tax increases to finance the war, dismissing such suggestions as “ridiculous” and stating they are “not at all” under consideration.

Early estimates indicate the conflict could become one of the costliest US military engagements since the wars in Iraq and Afghanistan. Administration officials have told lawmakers that the first six days of operations alone cost over $11 billion.

This comes despite already record-breaking defence budgets. The Republican-led Congress recently passed the Fiscal 2026 Defense Appropriations Act, allocating around $840 billion. Additionally, a sweeping tax-cut and spending package last year included $156 billion for defence.

Addressing concerns over rising oil prices, Bessent also defended the administration’s decision to ease sanctions on Iranian and Russian oil. He argued that allowing more countries such as Japan and South Korea to purchase oil would stabilise global markets and prevent prices from surging to $150 per barrel.

According to Treasury estimates, the move would only marginally benefit Russia, potentially increasing its oil revenue by up to $2 billion.

As the war continues and costs mount, the debate over additional funding is expected to intensify in Washington, with lawmakers weighing fiscal concerns against military preparedness.

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