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Pentagon seeks billions from Congress as concerns grow over Iran war

The Trump administration urged Congress on Tuesday to approve roughly $70 billion in emergency defense funding to sustain U.S. military capabilities amid its escalating war against Iran, warning that without it the Pentagon could face “critical shortfalls” disrupting its readiness.

The request comes as the United States and Iran have traded strikes for 10 consecutive days in a renewed conflict, deepening concerns in Washington over an expanding war that could inflame the global economy and trap the president in a quagmire.

The collapse of a ceasefire agreement and the sudden resumption of war have raised alarms within the Pentagon over its ability to protect U.S. forces and assets in the Middle East over a prolonged conflict, with defensive munitions in dangerously short supply, two Defense Department officials told The Times.

Yet the administration is facing bipartisan skepticism from lawmakers over the continuation of a war unpopular with a vast majority of Americans, over which they have had little oversight, and that in recent days has led to deaths of U.S. soldiers.

Those tensions became clear as Defense Secretary Pete Hegseth and Gen. Dan Caine, the chairman of the Joint Chiefs of Staff, testified before the Senate Appropriations Committee to make their case for the tens of billions of dollars and offer their first in-depth public remarks about the war since May.

Hegseth told senators the United States is at a “moment where we cannot afford inaction,” while Caine argued the funding request is coming to Congress “while time is still on our side.”

“It is critical that we stay ahead of our adversaries and we must have the funds before we are out of time,” Caine said.

Hegseth said the war is now expected to cost Americans $37.5 billion, up from a $29-billion estimate from early May. The war, initially projected by President Trump to last four to five weeks, is now entering its fifth month.

With no end in sight, senators from both parties signaled frustrations with the administration’s plans.

Sen. Patty Murray (D-Wash.), the top Democrat on the Appropriations Committee, said Democrats will not support more funding for the war.

“This administration’s refusal to explain what it is doing, or how this war is protecting Americans, its refusal to seek authorization from Congress, and its expectations that Americans will just pay for it all without any explanation or transparency is disrespectful,” she said.

Republican lawmakers also confronted Hegseth and Caine on several fronts.

Sen. John Kennedy (R-La.) told the Pentagon leaders that lawmakers “need some proper answers and some straight talk” about the administration’s plans to ensure Iran does not choke traffic through the Strait of Hormuz.

Asked whether Iran would impose tolls on merchant vessels passing through the vital waterway, Caine said it was a “hypothetical” scenario — a response Kennedy rejected.

Sen. Lisa Murkowski (R-Alaska) also put pressure on Hegseth, as she asked him whether the administration was still taking the position that it needed no authorization from Congress to continue hostilities against Iran.

“Senator, I know there’s a long-standing legal debate on this particular topic, but we certainly at the department share the position with the White House that we have all the necessary authorities at this moment,” Hegseth said.

Murkowski’s remarks come just weeks after Republicans joined Democrats in both the House and Senate in voting to reassert Congress’ constitutional role over the war, underscoring the simmering tensions over Trump’s decision to sideline Congress in the matter.

Hours before the hearing, Trump downplayed concerns over the war’s effect on the midterm elections and further threats in the war, as Houthis, the Iran-backed militia in Yemen, declared a maritime blockade Monday on Saudi Arabia.

“So far, it hasn’t happened. It might happen but we take care of things, if something like that happens,” Trump told reporters in the Oval Office.

Trump maintained that Iranian leaders are “desperately” trying to reach a deal to end the war but said he has no interest in meeting with them until he is convinced the talks will be “meaningful.”

“If we left right now, it would take Iran 20 to 25 years to rebuild. We are not finished at all,” Trump said. “We are not leaving right now.”

A protester holds a sign that says: No war on Iran

A protester interrupts Defense Secretary Pete Hegseth as he testifies at Tuesday’s hearing.

(Jacquelyn Martin / Associated Press)

Asked if he thought Iran was trying to have an effect on the midterm elections by threatening the Strait of Hormuz, Trump said, “probably.”

“It won’t have any impact on me,” he said. “The election, I can’t think about that having to do with this.”

An agreement reached in June between the United States and Iran proposed an end to a U.S. naval blockade of Iranian ports and to U.S. sanctions on Iranian oil exports in exchange for Tehran allowing unfettered commercial shipping traffic through the Strait of Hormuz. But the agreement fell apart, with Iran firing on commercial vessels and pursuing a toll system for transit that had not existed before the war started.

The deal was supposed to set up a structure for more detailed negotiations on Iran’s nuclear program, a prime target of the U.S. campaign launched in February in partnership with Israel.

Much of Iran’s nuclear infrastructure was degraded in a U.S. strike conducted last year that targeted three major facilities. But the fissile material required to build nuclear weapons remains in the country, under the watch of U.S. satellite surveillance. Iran has vowed to continue pursuing civilian nuclear work.

“How about these people? They’re in this because of nuclear weapons, and they’re trying to possibly reconstitute a site? We’ll hit that site. Any site where they’re even thinking about nuclear — we’ll be hitting it very, very powerfully,” Trump said.

As the war expands, there’s been heightened concern about the infrastructure that civilians in neighboring countries rely on for water and power.

Iranian officials said U.S. strikes hit the Bunji desalination plant on Iran’s southeastern coast, leaving 20 villages — where some 10,000 people reside — without water, according to reports from Iran’s semi-official news agency Tasnim.

Meanwhile, the Kuwaiti government said its power plants and desalination plants were struck by Iran on Monday — the fourth consecutive day of attacks on a key source of drinking water for the small desert nation.

The attacks spurred the Kuwaiti government over the weekend to launch an ad campaign calling on residents to reduce their water and power usage, especially during peak hours between 11 a.m. and 5 p.m.

A concerted campaign targeting desalination plants would be devastating both for Iran and the Persian Gulf nations it has peppered with drones and missiles since the start of the war.

Bahrain, Kuwait, Oman, Qatar, the Emirates and Saudi Arabia are among the world’s eight most water-stressed countries. Israel ranks 9th, while Iran is 14th, according to the Washington, D.C.-based Water Resources Institute.

All of them suffer from “absolute water scarcity,” according to metrics used by the U.N.’s Food and Agriculture organization.

Times staff writer Nabih Bulos in Beirut contributed to this report.

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NATO unveils billions in arms deals to prove its firepower as Trump arrives in Ankara

President Trump said on Tuesday that the U.S. will lift sanctions on Turkey that were issued after Ankara purchased a Russian missile defense system that led to the country being kicked out of the F-35 fighter jet program.

There are still a number of legal hurdles before Turkey could be fully admitted back to the U.S. program, but the removal of the sanctions — issued under the Countering America’s Adversaries Through Sanctions Act — would help ease the process for Ankara to regain access to the F-35s, a top goal of Turkish President Recep Tayyip Erdogan and one that Trump has predicted for some time would occur.

“We’re going to be taking the sanctions off, OK?” Trump said in response to a question during a meeting with Erdogan at the presidential palace in Ankara. He said Cabinet officials were working on the matter. Earlier in the meeting, he said the possibility of selling the F-35s to Turkey is “certainly something we will consider.”

Trump and Erdogan repeatedly underscored their warm relationship as they met soon after the U.S. president arrived in Ankara for the NATO summit. Erdogan greeted the U.S. president with an elaborate welcome ceremony involving cannons, military officials on horseback and jets flying overhead emitting red, white and blue smoke.

“Sometimes you get along with the toughest people, like him,” Trump said, gesturing to Erdogan. The U.S. president repeatedly praised Turkey for its loyalty to the U.S., particularly during the war in Iran.

Trump, who has often upended NATO gatherings with complaints that European allies did not spend enough on defense, had said he would not have attended this year’s summit had it not been for his close ties with Erdogan.

‘Moment of great pride’

Earlier in the day, NATO showcased a series of military projects worth billions of dollars — an investment that the alliance’s secretary-general, Mark Rutte, called “money well spent.”

An energized Rutte was speaking to government ministers and defense industry officials at a forum billed as NATO’s “big reveal,” to the thrum of techno music and a slick video display.

NATO as an organization does not own any weapons — these are the property of the 32 member countries — but it does have a fleet of 14 AWACS early warning radar surveillance planes that are about 50 years old, along with some newer surveillance drones.

A deal to replace the aging planes was announced Tuesday. Swedish manufacturer Saab will be supplying up to 10 new GlobalEye surveillance aircraft for a 10-nation consortium, Swedish Prime Minister Ulf Kristersson announced.

“It’s a moment of great pride,” he said, noting that the twin-engine aircraft would be “made within the alliance for all the alliance.”

Some of the projects will be paid for with funds from a system of cheap loans for defense purposes set up by the European Union, comprising up to $170 billion raised on capital markets.

“We need to ensure that we are translating our economic might into military capabilities, putting the cash to work from defense plans to drones, from money to missiles and interceptors,” Rutte said.

Trump has branded NATO a “paper tiger” that would cease to function without American arms and leadership. At the forum on Tuesday, Michael Duffy, a U.S. undersecretary of defense, said “the reality is that we need production increases across the board.”

“We will be looking to increase our exports to those who are looking to buy our equipment, and we’ll also be looking to partner with the expansion of production capacity here in Europe,” he said.

Defense sales announced

Representatives from 15 nations shook hands and patted shoulders on a vast podium under the NATO logo as they announced a multinational effort to buy air-to-air refueling and transport planes from Airbus.

Then Rutte announced a four-country effort to purchase as many as five new Triton surveillance drones to add to NATO’s small fleet.

“It is genuinely made in NATO, and creating jobs on both sides of the Atlantic,” he said.

Rutte told reporters on the eve of the military alliance’s two-day summit in Turkey that “we will announce tens of billions in new contracts that will provide the crucial kit we need to deter and defend.”

However, at Tuesday’s event, no dollar figures were given and the display included some projects long since agreed.

The defense industry splash comes a few weeks after Rutte tried to ease U.S. concerns about military spending at NATO with a new pitch using a chart labeled “The Trump Trillion” — showing $1.2 trillion in spending by European allies and Canada since 2017.

Trump appeared unmoved, saying he was still disappointed at some NATO allies’ refusal to join the Iran war, which he had launched alongside Israel without consulting them.

“We don’t need their money — we don’t need anything,” Trump said. “I just want loyalty.”

Debate over jet sales to Turkey

The summit is being held in Erdogan’s sprawling palace compound in Ankara, and Trump has suggested he would come bearing gifts for the Turkish leader.

Turkey was barred from the F-35 fighter jet program in 2019 after it purchased Russian-made S-400 missile defense systems. When asked about the fate of Turkey’s return to the F-35 system, Trump said as he sat next to Erdogan that “it’s certainly something we will consider.

Speaking Monday on the morning show “Fox & Friends,” Israeli Prime Minister Benjamin Netanyahu urged the U.S. not to sell F-35 fighter jets to Turkey, saying that Erdogan “calls openly for the annihilation of Israel.”

Turkey and Israel have acrimonious relations. Erdogan frequently accuses Israel of committing genocide in its war in Gaza, triggered by the deadly Oct. 7, 2023, Hamas-led attack on southern Israel.

Netanyahu said selling Turkey F-35s would “upset the power balance in the Middle East, which is ultimately guaranteed by Israeli air superiority and also, I think, by America’s posture in the Middle East.”

Turkey beefed up security and banned protests in Ankara during the summit, but a small group of demonstrators gathered on Tuesday in the capital. They were quickly surrounded by police, and a legal association said 22 students affiliated with the leftist Turkish Workers Party and three lawyers had been detained.

Seeking a stronger Europe for a stronger NATO

The Pentagon wants a reboot and is promoting what it calls “NATO 3.0,” a vision of the alliance in which Europe assumes greater responsibility for its own defense, freeing the U.S. to concentrate on other priorities.

But hiking defense spending means increasing taxes or diverting resources from other priorities. U.K. Defense Secretary John Healey unexpectedly quit last month, saying the British government was not willing to spend at a time of rising threats.

Separately on Tuesday, Ukrainian President Volodymyr Zelensky made a fresh appeal for his country to be allowed to join the alliance, saying its armed forces are highly experienced and resilient would only boost the alliance’s defense capabilities.

He highlighted Ukraine’s adaptability and its ability to strike deep inside Russia, hit oil refineries and other energy targets. He said that Ukraine’s armed forces are “eliminating” on average 30,000 Russian troops every month.

“Frankly we take no pride in this,” Zelensky said, noting that the war with Russia — now in its fifth year — is “a war we did not seek but one we are forced to fight.”

Concern is mounting among some northern and central eastern countries that Russia might be preparing a hybrid attack — a combination of conventional warfare with tactics like cyberattacks — on the continent as Russian President Vladimir Putin struggles to secure victory in Ukraine.

Cook, Fraser, Sewell and Kim write for the Associated Press. AP writers Jill Lawless in London and Andy Wilks in Istanbul contributed to this report.

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Trump disclosure shows billions in income after return to White House

June 30 (UPI) — President Donald Trump reported billions of dollars in income, revenue and other proceeds during his first year back in the White House, much of it tied to cryptocurrency ventures, according to his annual financial disclosure released Tuesday.

Trump reported at least $2.1 billion in income, revenue and other proceeds last year, according to his financial disclosure made public by the U.S. Office of Government Ethics, with more than half tied to cryptocurrency.

Though Trump was initially skeptical about cryptocurrencies,, he embraced the digital currencies — and their supporters — during his third campaign for the White House. After being elected, he created what some analysts have called a crypto-friendly administration.

During his first year in office, he took several actions in support of the crypto industry, including signing a digital-assets executive order during his first week in office and creating a strategic Bitcoin reserve and U.S. digital asset stockpile.

The 927-page financial disclosure states the president reported more than $1.4 billion in cryptocurrency income and proceeds, including $635 million from his $TRUMP meme coin and nearly $800 million from World Liberty Financial, a Trump family-linked cryptocurrency venture.

The $TRUMP memecoin was a cryptocurrency Trump announced days before his inauguration. He announced the $MELANIA memecoin the day before he was inaugurated.

Memecoins are cryptocurrencies with little to no intrinsic utility, often derived from Internet memes and supported by online communities or fans.

After Trump announced the coins, critics accused him of attempting to profit from the presidency.

The disclosure also shows that Trump reported tens of millions in revenue from golf, resort and real estate-related holdings, including $121.9 million from Trump Doral, $77.5 million from Mar-a-Lago, $37.6 million from his Lamington Farm Club, $36.9 million from Trump International Golf Club in West Palm Beach and $31.6 million from his Jupiter Golf Club, among others.

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US says China to buy billions in agricultural goods after Trump-Xi talks | Business and Economy News

China will buy ‘at least’ $17bn worth of US agricultural goods annually, the White House says.

China will buy “at least” $17bn worth of agricultural goods from the United States annually following US President Donald Trump and Chinese leader Xi Jinping’s summit in Beijing, the White House has said.

China will make the purchases through 2028, with the 2026 target applying to the remainder of the year on a proportionate basis, according to a fact sheet released on Sunday.

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The White House said the deal is in addition to China’s commitment to buy at least 87 million metric tonnes of US soya beans, which was made at Trump and Xi’s summit in South Korea in October.

China will also restore market access for US beef by renewing the expired listings of more than 400 production facilities, and resume imports of poultry from states determined by the US Department of Agriculture to be free of avian influenza, according to the fact sheet.

Trump and Xi also agreed to establish two new bodies – the US-China Board of Trade and the US-China Board of Investment – to manage trade and investment between the sides, the White House said.

China has yet to confirm or comment on the White House’s announcement.

The Chinese Embassy in Washington, DC, did not immediately respond to a request for comment.

The White House’s update provides further clarity on the outcome of Trump and Xi’s two-day summit, which was heavy on pageantry and camaraderie but light on concrete agreements.

During their two days of talks in Beijing, Trump and Xi sought greater alignment on economic issues and trade, while largely skirting the sensitive issues of Taiwan and the US-Israel war on Iran.

In a readout after the summit wrapped up on Friday, the White House said the two sides had discussed ways to “enhance economic cooperation”, and that they agreed on the need to keep the Strait of Hormuz open and that Iran “can never have a nuclear weapon.”

Beijing did not explicitly state that Iran should not have nuclear weapons, but stressed the importance of reaching “a settlement on the Iranian nuclear issue and other issues that accommodates the concerns of all parties”.

Neither White House statement contained any mention of Taiwan, the self-governing island that Beijing views as an integral part of its territory.

The omission of any reference to the island – the defence of which Washington is committed to supporting under the 1979 Taiwan Relations Act – came after Xi warned of “clashes and even conflicts” between the superpowers if the issue is not “handled properly”.

After nearly a decade of tit-for-tat economic salvoes between Washington and Beijing, US-Chinese trade is down sharply from its peak.

Their bilateral trade in goods last year came to some $415bn, down from more than $690bn in 2022.

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