'Plenty of money to fund this war': US Treasury Secretary Bessent hints war with Iran not ending soon

The Treasury Secretary also dismissed any possibility of increasing taxes to finance the war, addressing concerns that Americans could be burdened with the costs. However, he did not specify the source of the additional funding. Reliance on tariff revenues, as used previously, may be less feasible now, adding uncertainty about how future expenses will be covered.

As the war with Iran continues, it is increasingly becoming a test not only of military capability but also of the US government’s financial resilience. US Treasury Secretary Scott Bessent has assured Americans that there is sufficient funding to sustain the war, even as the administration plans to request additional resources from Congress.

Speaking on NBC’s Meet the Press, Bessent reiterated that the war effort would not result in higher taxes, despite signals from the Pentagon indicating a need for more funding.

Bessent said that the US government has sufficient financial resources to maintain the war effort.

"We have plenty of money to fund this war," Bessent said, describing the additional funding request "supplemental" rather than necessary for immediate operations.

No tax increase, but concerns persist

Bessent further said that the purpose of requesting additional funds is to keep the military fully prepared in the coming months. He noted that the administration aims to prevent any shortages of equipment or resources as the conflict continues, particularly in the event of further escalation. 

The Treasury Secretary also dismissed any possibility of increasing taxes to finance the war, addressing concerns that Americans could be burdened with the costs. However, he did not specify the source of the additional funding. Reliance on tariff revenues, as used previously, may be less feasible now, adding uncertainty about how future expenses will be covered.

The proposed request for additional funding, expected to amount to hundreds of billions of dollars is already encountering opposition in Congress, with lawmakers from both parties expressing reservations, particularly following the approval of substantial defence budgets in recent years.

Veteran Republicans and Democrats have sought more details before giving greenlight for any new spending. 

Some have questioned the necessity of such a large request, while others have raised concerns about the long-term financial implications of another major war.

One of the costliest conflict in recent US history

Preliminary estimates indicate that the conflict is turning into one of the costliest US military operation in recent decades. Officials have noted that the initial phase of the war alone required billions of dollars within a matter of days, highlighting the financial pressure of prolonged operations.

The economic effects on the United States are also becoming evident. Increasing oil prices, driven by disruptions in the Strait of Hormuz, have raised fuel costs worldwide, with Americans experiencing higher prices at the petrol pump. This has added pressure on the administration to justify both the war and its associated expenses.

Meanwhile, uncertainty persists regarding the conflict’s long-term objectives. Defence Secretary Pete Hegseth has justified the need for additional funding, stating that it is essential to prepare for both ongoing and future operations. He also noted that the final funding request may vary depending on how the situation develops.