Iran's War is Too Expensive, U.S. Navy Adjusts Salaries to Fill Gaps

Xinhua News Agency, Beijing, August 28 - According to a report by the British "Guardian" on the 27th, the U.S. military operations against Iran have plunged the U.S. Navy into a serious financial crisis, forcing it to divert funds from salaries.

The report states that the military action against Iran initiated by U.S. President Trump on February 28 has left the U.S. military, especially the Navy, with a tight budget. The U.S. Navy not only assisted in launching the initial rounds of attacks but also took on the responsibility of maritime blockade in subsequent operations.

A memorandum from the U.S. Department of Defense regarding Navy funding shows that the Department has "plundered" salary accounts to finance combat operations, leading to a funding shortfall. An informed officer said that to address the salary shortfall, funds are being "shifted from one place to another." "The money that was supposed to be used for salaries has been diverted, and some unspent funds have been moved to fill the gap."

The U.S. Navy's budget for fiscal year 2026 is close to $300 billion, but it cannot be freely adjusted due to legal restrictions. In the $67 billion emergency funding request proposed by the Trump administration for this fiscal year, about $15 billion is allocated for the procurement of "Patriot" missiles, the "THAAD" missile defense system, and various types of missiles, but it is unclear how much will be used for the Navy.

The U.S. House of Representatives approved a total of $1.15 trillion for the fiscal year 2027 defense authorization bill in July, along with an additional $73 billion specifically for the costs of the war with Iran. However, due to widespread domestic opposition to the war with Iran, the "Guardian" anticipates that these two budgets will have difficulty gaining approval in the Senate.

A U.S. Navy spokesperson stated in a statement that maintenance and operational funds have not yet been exhausted. "The Navy is actively reallocating resources to meet current payroll obligations on time."

The report indicates that the funding shortfall is no longer a secret within the U.S. Navy. However, the bigger challenge now is raising funds for a seemingly endless war. Due to financial constraints, non-emergency maintenance work at U.S. Navy shore facilities has been suspended. An informed former officer now working as a Navy contractor stated, "They are done; they have used up all the ammunition... and have run out of money." (Ocean)