US plans to end military aid program for Kurdish Peshmerga forces

BAGHDAD, Iraq — The United States is planning not to renew a military aid program that funds Peshmerga forces in Iraq's Kurdistan Region, according to a BBC report citing four sources. The US Defense Department has informed Kurdish authorities that it will not extend the counterterrorism memorandum of understanding when it expires on September 30. The Peshmerga received $61 million under the program in fiscal year 2026. The Pentagon is proposing cuts across all related budget lines for 2027, citing the assessment that ISIS has been effectively defeated. Kurdish officials have opposed the reduction, pointing to escalating Iranian threats in the region. They said Iran and groups it backs carried out 158 attacks in Kurdistan from the start of the year through the end of May, including missile and drone strikes. The Pentagon said the decision is not final and that Washington is reviewing alternative ways to sustain security support for Iraq and the Kurdistan Region. Separately, under a 2024 agreement between the US and Iraq, coalition forces are scheduled to withdraw from Iraq in September, with the closure of the last US-hosted base in Erbil planned as part of the drawdown.