The U.S.-Iran War Drains the U.S. Navy's Treasury, Facing Many Constraints in Building the "Golden Fleet"

According to a report by Reference News on September 1, the French weekly magazine Le Point reported on August 28 that since the outbreak of the U.S.-Iran conflict, the U.S. Navy has been operating at high intensity, with resources being rapidly consumed and some expenditures being forced to be postponed. This poses a significant budget challenge for Trump.

Retired Navy officer Harun Alman said in an interview with The Guardian, “The piggy bank has been smashed.” This statement can summarize the financial situation of the U.S. Navy since the outbreak of the U.S.-Iran conflict. According to documents and interviews obtained by the media, the resources of the U.S. Navy are quickly depleting, and due to a lack of funds, non-emergency maintenance work on certain shore facilities has been postponed.

On February 28, Trump declared war on Iran, putting immense operational pressure on the U.S. Navy. They participated in the first round of strike operations and then had to be responsible for a large-scale maritime blockade. This task has placed a heavy burden on a military budget that had not allocated funds for large-scale operations. Admiral Daryl Caudle, the Chief of Naval Operations, warned during a congressional hearing in May: “The budget for fiscal year 2026 does not include the ‘Epic Fury’ operation.”

Reports indicate that in June 2026, the White House requested $67 billion in emergency funding for the Department of Defense from Congress, but it was not specified how much of that would be allocated to the Navy. According to The Guardian, the House of Representatives subsequently passed a $1.15 trillion defense bill in July, which also allocated $73 billion in special funding for the Iran war. However, the likelihood of these bills becoming law remains slim, primarily because the conflict is unpopular. During this period, the U.S. Navy can only reallocate resources within the existing framework. An official explained that funds originally intended for payroll have been diverted to cover unexpected expenses incurred from overseas operations, with plans to replenish them later using unspent appropriations.

Reports indicate that Trump has long claimed to share a vision with former U.S. President Theodore Roosevelt, who promoted the expansion of the U.S. Navy in the early 20th century and deployed the "Great White Fleet." The Trump administration proposed to create a "Golden Fleet." The accompanying grand plan is to equip the Navy with a fleet of combat vessels, the largest since World War II. According to CNN, the plan aims to build 15 nuclear-powered surface warships of 35,000 tons each between 2028 and 2056, with a total estimated cost of $275 billion. The first ship is expected to cost $23.4 billion, with subsequent ships costing about $18 billion each.

Reports indicate that several months after the project was initially announced, it was decided to adopt a nuclear power solution, significantly increasing overall costs. However, cost is not the only challenge. CNN cited a report from the Congressional Budget Office stating that U.S. shipyards may not have the capacity to handle such a large workload.

By 2035, this plan of the U.S. Navy will double the tonnage of large surface combat vessels being built, or even more. However, the industry is currently facing issues of delays and cost overruns. Former Navy Secretary John F. Kelly, who was dismissed in April this year, pointed out in 2025 that the Navy's shipbuilding plan had been delayed by six months and was 57% over the initial budget.

The New York Times noted that the ambition to strengthen the Navy is rooted in the vision advocated by Trump. In September last year, he mentioned the documentary "Victory at Sea," which recounts the naval achievements of World War II, in front of military leaders. He said at the time, “I think we should start considering building battleships.” However, the report also pointed out that the role of battleships had become limited during the Pacific campaign in the 1940s, while the newer aircraft carriers demonstrated greater multi-role capabilities and higher operational efficiency in combating the Japanese fleet at sea. Nevertheless, Trump’s dream of a maritime superpower ultimately faces more realistic constraints: a lack of funding. (Translated by Wang Zhongju)