Pentagon Security Aid Cuts and the Peshmerga Budget Battle

The memorandum of understanding establishing military cooperation between the Pentagon and the KRG was first signed in 2016 and later renewed in 2022. Under the terms of the Pentagon’s counter-IS programme, the Peshmerga received $61 million in fiscal year 2026 for weapons acquisition, military training, and troop stipends. However, the Pentagon’s fiscal year 2027 budget request proposed eliminating all security assistance to the group. According to defense officials, the proposed cuts stem from the argument that the territorial defeat of Islamic State (IS) renders the dedicated funding unnecessary, though the entire spending plan remains stalled amid a broader budget battle in Congress.

Did you know? The sole remaining US military base in Iraq is located in the Iraqi Kurdish capital of Irbil and is scheduled to close next month alongside the complete coalition withdrawal.

Surging Regional Threats and Iranian Attacks in Iraqi Kurdistan

The potential loss of American financial and military support has sparked deep apprehension among Kurdish leadership, compounded by a sharp escalation in hostile activity from neighboring Iran. Iran and Iranian-backed militias launched 158 missile or drone attacks inside Iraqi Kurdistan by late May, according to research on the latest available data compiled by the Foundation for Defense of Democracies, a Washington DC think tank. Despite this mounting security pressure, defense department officials informed Iraqi and Kurdish leaders during recent talks that the US does not plan to renew the memorandum of understanding, sources familiar with the discussions confirmed.

Future US Security Engagement and Withdrawal Timeline

The departure of US and coalition troops on September 30 will officially conclude the international military campaign against IS. During this multi-year campaign, the Peshmerga fought side-by-side with coalition forces to dismantle jihadist control across parts of Iraq and Syria. While the current military assistance agreement is set to expire on the exact day of the troop withdrawal, a final decision regarding future bilateral security engagement is still under review, according to one source familiar with the Pentagon’s thinking. Sources indicate that Washington is actively considering alternative methods to maintain targeted security support in both Iraq and Iraqi Kurdistan following the base closures.

Frequently Asked Questions

When is the US military withdrawing from Iraq?

The US and other coalition nations are withdrawing their remaining troops from Iraq on September 30, which will formally end the international military campaign against IS.

US Plans to Cut Military Aid to Middle East Ally

How much funding did the Peshmerga receive from the US?

The Peshmerga received $61 million in fiscal year 2026 through the Pentagon’s counter-IS programme for weapons, military training, and stipends.

How many attacks has Iran launched inside Iraqi Kurdistan?

According to data compiled by the Foundation for Defense of Democracies, Iran and Iranian-backed militias conducted 158 missile or drone attacks inside Iraqi Kurdistan by late May.

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