LIVE: Hegseth, Caine testify to House Appropriations Subcommittee

Operation Epic Fury Costs Confirmed

The Pentagon confirmed the Iran conflict operation has cost $25 billion, with Congress demanding a detailed supplemental funding breakdown—including munitions used, equipment losses, and facility damage—by June 11th.

Reconciliation Used for Industrial Base Injection

Hegseth defended using reconciliation to fund approximately $200 billion in one-time industrial base investments, acknowledging the strategy carries political risks but arguing it is necessary to break 'static' procurement cycles.

Sustainability Concerns Addressed

Officials stated the FY28 budget topline request of $1.23 trillion represents a return to discretionary baseline funding, with $13 billion for industrial base catch-up and $35 billion for facilities maintenance characterized as non-recurring expenses.

Munitions Shortage Claims Rejected

Hegseth asserted that concerns about munitions depletion were 'foolishly and unhelpfully overstated,' insisting the department knows exact inventory levels and maintains 'plenty of what we need' for global operations.

Multi-Year Contracts for Capacity Expansion

The $331 billion munitions budget aims to secure 5-7 year contracts that lock in current prices, incentivizing defense companies to build new plants and achieve 2x-4x production multipliers rather than incremental increases.

War Powers Deadline Lapsed

Representatives noted the 60-day War Powers Resolution deadline passed on May 2nd without congressional authorization, legally requiring the administration to secure explicit approval to continue military operations against Iran.

Classified 'Plan B' Exists

While declining to detail contingencies in open session, Hegseth confirmed plans exist for escalation, retrograde, and troop drawdown if Congress withholds authorization, emphasizing the need for supplemental funding to maintain 'maximum optionality.'

E7 Aircraft Amendment Submitted

Following the loss of an E3 AWACS aircraft, DOD submitted a budget amendment to OMB to fund five E7 Wedgetail planes, reversing course from the previous 'divest to invest' strategy that had deferred current capability for future systems.

Army Aviation Cuts Under Review

After criticism that $5 billion in cuts would shutter Blackhawk and Chinook production lines, Hegseth admitted the department is 'taking another look' at the Army aviation transformation initiative to avoid near-term mobility gaps and supplier base collapse.