The escalating conflict between the US and Iran has taken a significant financial toll on both countries, with new developments emerging in Washington. In a closely contested vote, the Republican-controlled House of Representatives has passed a $95 billion budget resolution that will provide crucial funding for military operations against Iran and support American farmers affected by global economic instability.
The resolution allocates a substantial portion, estimated at $73 billion, towards military spending in the region. This figure comes on top of Defence Secretary Pete Hegseth's admission earlier this week that the war has already incurred costs of approximately $37.5 billion. The Trump administration had previously sought around $88 billion in supplemental funding, with the majority earmarked for military expenses.
The proposed bill also includes a further $12 billion allocated to the agriculture committee, aimed at supporting US farmers who have been severely impacted by the global economic repercussions of the Iran conflict and the Trump administration's tariff policies against key trading partners. This highlights the significant domestic economic fallout stemming from international tensions and trade disputes.
However, the resolution also includes a contentious provision: a $10 billion allocation for the House administration committee to advance the 'Save America Act', championed by Donald Trump. This measure seeks to ban mail-in ballots nationwide and impose stricter identification requirements for voters. It is widely expected that these policy changes will be stripped out in the Senate, as reconciliation bills are typically limited to matters of spending, revenue, and the debt limit.
Democrats have strongly criticised the Republican proposal, with House Minority Leader Hakeem Jeffries describing the war as "reckless and costly" and accusing Republicans of indifference to the economic well-being of ordinary Americans. While the House has approved the resolution, its progress in the Senate remains uncertain, with Senate Republican Majority Leader John Thune indicating that he would hold the measure, potentially repurposing it for a stopgap funding measure if government funding negotiations with Democrats break down before the 30 September deadline.