The Trump administration is reportedly planning to cut off military aid to the Peshmerga, the Kurdish security force in Iraq's semi-autonomous Kurdistan region. This move comes as the region faces increased attacks from Iran, according to four sources familiar with the matter.
The US Department of Defense has informed Kurdish leaders in recent meetings that it does not intend to renew an expiring agreement providing security assistance. The current memorandum of understanding between the Pentagon and the Kurdish Regional Government (KRG) is scheduled to expire on 30 September 2026.
This date also marks the withdrawal of the last remaining US and other international troops from Iraq, formally ending the military campaign against the Islamic State group (IS). The Peshmerga previously received $61 million in fiscal year 2026 for weapons, training, and stipends through the Pentagon's counter-IS programme.
Kurdish officials have expressed concerns that ending this funding could create a power vacuum and embolden Iran, which has launched hundreds of missiles and drones into Iraqi Kurdistan since the US President Donald Trump initiated a conflict with Tehran. Analysts suggest that cutting aid to the Peshmerga, a long-time partner, could undermine trust in US alliances in the region.
While the Pentagon had proposed cutting all security aid for the Peshmerga in its fiscal year 2027 budget request, arguing that the money should be reallocated after IS's defeat, the spending plan is currently on hold due to a broader budget dispute in Congress. A final decision on security engagement between the US and Kurdistan is still under review, with the US reportedly considering ways to maintain some security support after the troop withdrawal.