Officer Ousters, a Cash Crunch and Iran Attacks: The Headaches Mount for Hegseth

The defense secretary is at odds with military leaders and lawmakers as the Pentagon navigates budget shortfalls and a revived Iran war.

Senate Defense 26202737840446

Operation Epic Fury has so far cost Pete Hegseth’s Pentagon more than $42 billion, led by $15 billion for missile interceptors and $10 billion for the U.S. targeting campaign, according to a recent American Enterprise Institute estimate. (Jacquelyn Martin/AP Photo)

The House passed a stopgap spending bill this week to avert a government shutdown, but the measure does little to relieve the Pentagon’s mounting financial strain six months into the Iran war — or the pressure facing Defense Secretary Pete Hegseth.

While the continuing resolution keeps the government funded into early December largely at existing spending levels, it does not provide the tens of billions of dollars the Pentagon says it needs to cover Iran operations, replenish munitions and sustain forces whose deployments have been extended.

The fiscal squeeze comes as Hegseth faces problems on several other fronts: Senior military leaders are warning that prolonged Middle East operations are eroding readiness elsewhere, and Army Secretary Dan Driscoll is leaving after months of friction with the defense secretary.