President Donald Trump declared he would utilise frozen Iranian assets under American control to compensate for damages to vessels and cargo in the Gulf region, in an interview earlier today.
A journalist questioned Trump regarding the practicalities of deploying Iranian assets to cover damages to ships struck in the Strait of Hormuz. "Would the U.S. pay shipping companies directly?" asked the reporter. Trump responded: "No, we're going to use Iran's money to pay for the damage. In other words, the Iran money that we control will be used to pay for damages. Sound good? Not bad, right?"
House passes $95 billion budget proposal
Trump's remarks come just days after the House passed a Republican-backed $95 billion budget proposal on Wednesday, an ambitious bid to fund the Iran war and other White House priorities, despite opposition from Democrats and a handful of GOP dissenters in a final push ahead of the midterm elections.
House Republicans remained split over the proposal, with conservatives uneasy due to the absence of any offsetting budget cuts. Nevertheless, Speaker Mike Johnson pressed forward, regarding the go-it-alone approach as the strongest opportunity to steer President Donald Trump's priorities through the divided Congress, despite considerable scepticism in the Senate.
Vote and reactions
The vote count stood at 216-214, with two Republicans and one independent siding with Democrats in opposition. "Just bullets and bombs to finish the job," said Rep. Jodey Arrington, R-Texas, the chairman of the Budget Committee. Democrats contended the funds should be directed domestically, particularly towards initiatives to reduce costs for Americans.
"Republicans plan to spend tens of billions of dollars on Trump's failed war in Iran," said Rep. Pete Aguilar of California, chairman of the House Democratic caucus, this week. "Think about what we could spend with these resources instead."
Congress remains deadlocked over the U.S. military campaign against Iran - powerless to halt Trump's airstrikes, yet not having authorised the deployment of American armed forces - and politically divided over allocating billions in taxpayer money to fund it. Most Americans disapprove of Trump's Iran strategy, according to a recent AP-NORC poll.
Senate path uncertain
Even as the House measure progressed, Johnson's approach faces an uncertain path in the Senate. The package contains $60 billion for the Pentagon and $13 billion for additional national security requirements, $12 billion for farmers impacted by Trump's tariffs and $10 billion for electoral law reforms consistent with the SAVE America Act and proof-of-citizenship provisions that represent Trump's foremost priority.
Republicans are banking on the budget reconciliation process, which allows legislation to pass by a simple majority vote in Congress, circumventing the Senate's power to filibuster a measure and potentially derail it. Once considered an unusual tactic, the reconciliation process has become Johnson's go-to strategy for driving proposals through Congress. It was the very mechanism Republicans used to push through Trump's sweeping tax cuts and spending reductions bill last summer, as well as to fund Homeland Security this year, overriding Democratic opposition to financing Trump's mass deportation programme.
"No matter how you feel about current events, these funds are necessary to ensure our fighting forces remain ready, our troops are paid, and our nation is safe," said Rep. Mike Rogers of Alabama, the Republican chairman of the Armed Services Committee.
