US Contemplates Cutting Military Aid to Kurdish Peshmerga Amid Rising Iran Attacks
The Trump administration is reportedly planning to end U.S. military assistance to the Kurdish Peshmerga, a frontline partner in Iraq’s fight against ISIS. Sources familiar with recent Pentagon meetings told the BBC the memorandum of understanding (MoU) that covers weapons, training and stipends will not be renewed after it expires on 30 September, the same date the U.S. withdraws its remaining troops from Iraq.
The Peshmerga has played an essential role in securing northern Iraq and has benefited from about $61 million in fiscal‑year 2026 aid, including combat gear and personnel support. With the war on ISIS largely over, the Pentagon argues the funds should be re‑allocated, a proposal that remains stalled amid ongoing congressional budget talks.
Kurdish leaders fear the funding cut will create a security void that Iran can exploit. Tehran has escalated its campaign against Kurdish regions, launching 158 missile or drone attacks on Kurdish territory by late May. An Iranian strike on the Peshmerga base in Erbil earlier this month underscored the vulnerability of the region.
"The U.S. would be cutting off the Kurds, who shed so much blood to help the Americans achieve their goals in Iraq and the wider Middle East," said Yerevan Saeed, director of the Global Kurdish Initiative for Peace at American University. "This is going to be a big win for Iran, China, and Russia if the Kurds are left so exposed," Saeed added.
The MoU’s expiration comes shortly after the U.S. established its largest consulate in the world in Erbil last December, a symbol of the friendship between Washington and Kurdistan. Closing the consulate would signal a sharp decline in U.S. engagement in the region.
While the U.S. has not confirmed how many troops remain in Iraq, some experts estimate fewer than 1,000 active deployments, a steep decline from 170,000 at war’s peak. The withdrawal is seen as a move to reduce U.S. exposure to Iranian hostility.
However, scholars warn that without continuing support, the Peshmerga may become the most vulnerable target for Iranian‑aligned militias. The balance of power in Iraqi Kurdistan could shift dramatically if the U.S. fails to accompany the region with alternate security mechanisms.
The decision to cut aid will likely prompt Iraqi and Kurdish officials to seek new security agreements, as U.S. and Iraqi leaders discuss how best to maintain stability after the troop drawdown. Whether a new pact will materialise remains uncertain.
Sources say the dispute shapes broader regional dynamics, with the U.S. exploring whether it can provide alternative security funding to Iraq and Kurdistan after the withdrawal. The outcome will influence how the international community responds to rising Iranian influence in Iraq, possibly affecting the stability of the entire region.
