Washington is preparing to sharply reduce direct security assistance to the Kurdish Peshmerga as a four-year agreement approaches expiration, raising concerns over counterterrorism operations, force reforms and stability in northern Iraq.
US–Peshmerga Agreement Nears Its End
The US Department of Defense has reportedly informed officials in Iraq’s semi-autonomous Kurdistan Region that it does not currently plan to renew the security-assistance memorandum supporting the Peshmerga. The framework, renewed in September 2022, was designed to strengthen counter-ISIS operations and advance reforms within the Kurdish security forces. It is scheduled to expire in September 2026. The Peshmerga previously served as one of Washington’s most important ground partners during the campaign against the Islamic State. The original agreement also recognized the force as a component of Iraq’s wider security structure.
Pentagon Budget Signals Major Funding Reduction
The Pentagon’s proposed fiscal 2027 budget removes approximately $61 million previously allocated for Peshmerga training and equipment, while retaining limited medical assistance of about $1.35 million. Salary stipends had already been discontinued, with Baghdad expected to assume greater responsibility for financing the Kurdish forces. However, the proposal remains subject to congressional approval and should not be described as a complete or finalized termination of every form of US cooperation. The reduction follows a gradual decline in assistance as Washington reassesses its overseas commitments and the anti-ISIS coalition reduces its presence in Iraq.
Security and Reform Concerns Intensify
Kurdish authorities and security specialists warn that the loss of training, equipment and institutional support could weaken preparedness at a sensitive time. The Kurdistan Region continues to face threats from ISIS remnants as well as drone and missile attacks linked to regional tensions. At the same time, Washington and its coalition partners have repeatedly expressed frustration over delays in unifying forces affiliated with the Kurdistan Democratic Party and the Patriotic Union of Kurdistan under the Ministry of Peshmerga Affairs. Reforming the command structure and reducing political divisions were central objectives of the 2022 agreement.
Erbil Seeks Alternative Security Arrangements
Officials in Erbil are expected to continue discussions with Washington, Baghdad and European partners in search of a replacement arrangement. Several coalition countries participate in advisory programmes supporting Peshmerga professionalisation, but their commitments after the US agreement expires remain uncertain. The proposed cutoff may place greater pressure on Iraq’s federal government to provide the Peshmerga with a stable budget and integrate it more effectively into the national security system. As negotiations continue, the central challenge will be preventing a security gap while preserving the counterterrorism gains achieved through years of US-Kurdish cooperation.
