US Treasury chief: 'Plenty of money' to fund Iran war, no tax hikes needed

Washington has "plenty of money" to fund its ongoing war against Iran, US Treasury Secretary Scott Bessent has said. In an interview with NBC News on Sunday, Bessent said the administration of President Donald Trump does not plan to raise taxes to cover the Pentagon's reported $200 billion request for funding the war in Iran.

Military funding

"Why would we (raise taxes)? We have plenty. We have a trillion dollars in this year's budget for the military," the secretary said. "Actually, now we have plenty of money to fund this war. What we are doing is -- this is supplemental," said Bessent, without elaborating on the source of the funds. "President Trump has built up the military, as he did in his first term, as he is now doing in his second term. And he wants to make sure that the military is well supplied going forward."

Escalate to de-escalate

Bessent also defended strikes on Iran's infrastructure, saying "sometimes you have to escalate to de-escalate," adding that these attacks are "the only language the Iranians understand." His comments signal the administration's continued commitment to military pressure despite growing international calls for de-escalation.

Conflict context

US-Israeli strikes against Iran began on Feb. 28 and have reportedly killed at least 1,300 people, according to Iranian authorities, including former Supreme Leader Ayatollah Ali Khamenei and more than 150 schoolgirls. Iran has retaliated with drone and missile strikes targeting Israel, Jordan, Iraq, and Gulf countries hosting US military assets, causing casualties and damage to infrastructure while disrupting global markets and aviation. The conflict has expanded to Lebanon, where Israeli ground operations have displaced over one million people.