On August 29, the BBC reported that the US was planning to end military support to the Kurdistan Regional Government’s (KRG) Peshmerga military force. The report comes as the US is withdrawing forces from Iraq ahead of a September 30 deadline and has led to numerous media reports in northern Iraq’s Kurdistan Region about the implications of a funding cut. Discussions about future US support also took place amid a new round of Iranian attacks on the Kurdistan Region on the night of September 1-2.
US funding and support for the Peshmerga are part of a broader Memorandum of Understanding (MOU) between the US Department of Defense and the Kurdistan Regional Government Ministry of Peshmerga Affairs, first agreed to in 2016. In 2022, when the MOU was renewed, the Pentagon noted that it was focused on “supporting the Peshmerga Forces’ contributions to Defeat-ISIS operations as a component of the Iraqi Security Forces.” The deal also supported reforms within the KRG’s Peshmerga Ministry.
In the spring of 2026, reports first emerged that the new US budget funding request would reduce support for the Peshmerga from $61 million to zero. A small amount of support for medical needs, around $1 million, would continue in 2027. When this was reported in May, the Rudaw Media Network noted a discussion about keeping some of the funding. “The remarks come as the fiscal year 2027 budget proposal seeks to centralize the Counter-ISIS Train and Equip Fund in Baghdad. The request allocates $118.9 million to federal Iraqi defense and counter-terrorism forces while outlining zero direct funding for the Kurdistan Region,” the report noted.
The latest report still shows a move to zero funding, but the KRG has sent mixed messages about what comes next. On August 29, the Peshmerga Ministry said it had not been informed about a cut in funding. However, on August 30, the ministry also confirmed to Rudaw that the Memorandum of Understanding would end on September 30.
“Four years ago, at the Kurdistan Region Presidency, we signed a Memorandum of Understanding with the coalition. The four-year term ends in September, and all provisions within the memorandum have been fully implemented,” Minister of Peshmerga Shoresh Ismail told Rudaw. It was not clear from the reports if the MOU was directly tied to the funding.
“The US Government’s financial support to the Kurdistan Regional Government for the unification of the Peshmerga forces was always intended to be temporary,” US Ambassador Joey Hood, the former US acting assistant secretary of state for Near Eastern Affairs, told The New Region.
There is a push within the KRG to keep US support after September. Channel 8, headquartered in Sulimaniyeh in the Kurdistan Region, quoted a Peshmerga Ministry official as saying that the US and KRG would engage in discussions about continued support. KRG Interior Minister Reber Ahmed also said on August 29 that there were discussions with the Pentagon.
“The expiration of the current agreement should not be interpreted as an end to the strategic partnership or co-operation between the US and the Kurdistan Region,” Noreldin Waisy, spokesman for KRG Prime Minister Masrour Barzani, told The National on August 29.
As the funding debate continues, Iran carried out strikes on the KRG on the evening of September 1-2. The Democratic Party of Iranian Kurdistan, one of the several Kurdish Iranian dissident groups that operate in northern Iraq, said it was targeted by Iranian drones. “Three drones first hit the Balisan mountains. Shortly afterwards, the Jezhnikan camp near Erbil, home to the families of PDKI members, was also targeted,” the group said.
The KRG’s Counter Terrorism Directorate said that the anti-Islamic State coalition had downed 10 drones. Rudaw also claimed that the Iranian attacks had “destroyed” a surveillance balloon, though there was no separate confirmation. There have been more than 1,000 drone and missile attacks on the KRG since the US and Israeli strikes on Iran began in February.
Facts Only
* On August 29, the BBC reported the US planned to end military support to the Kurdistan Regional Government’s Peshmerga military force.
* The US was withdrawing forces from Iraq ahead of a September 30 deadline.
* US funding and support for the Peshmerga stem from a Memorandum of Understanding (MOU) between the US Department of Defense and the KRG Ministry of Peshmerga Affairs, first agreed to in 2016.
* The 2022 renewal of the MOU focused on supporting Peshmerga contributions to Defeat-ISIS operations and reforms within the KRG’s Peshmerga Ministry.
* Reports indicated a new US budget funding request for fiscal year 2027 sought zero direct funding for the Kurdistan Region, allocating $118.9 million to federal Iraqi defense forces instead.
* The Peshmerga Ministry stated it was not informed about a cut in funding on August 29.
* The Peshmerga Ministry confirmed that the Memorandum of Understanding would end on September 30 on August 30.
* A KRG official stated the four-year term of the MOU ended in September and provisions were fully implemented.
* There were discussions between KRG officials and the Pentagon regarding continued support.
* Iran carried out strikes on the KRG on the evening of September 1-2.
* The KRG’s Counter Terrorism Directorate claimed to have downed 10 drones against the anti-Islamic State coalition.
Executive Summary
The United States was reportedly planning to end military support to the Kurdistan Regional Government’s Peshmerga military force, according to a BBC report from August 29. This discussion occurred as the U.S. was withdrawing forces from Iraq ahead of a September 30 deadline, prompting media reports in the Kurdistan Region regarding funding implications. US funding for the Peshmerga is tied to a Memorandum of Understanding (MOU) established in 2016, which involved supporting the Peshmerga’s contributions to Defeat-ISIS operations and reforms within the KRG’s Peshmerga Ministry.
Reports indicated that a new US budget request for fiscal year 2027 sought to centralize the Counter-ISIS Train and Equip Fund in Baghdad, allocating $118.9 million to federal Iraqi forces while outlining zero direct funding for the Kurdistan Region. While the latest report still indicated a move to zero funding, the KRG issued mixed signals regarding the termination of the MOU, with the Peshmerga Ministry initially stating they were not informed of a cut but later confirming the MOU would end on September 30. Despite this, there was a push within the KRG to secure continued US support post-September, as indicated by discussions between KRG officials and the Pentagon. Simultaneously, Iran conducted strikes on the KRG on September 1-2, leading to claims of drone activity against Kurdish groups.
Full Take
The narrative reveals a tension between external geopolitical shifts, internal administrative restructuring, and localized security dynamics. The core conflict revolves around transactional support—US funding—being contingent upon shifting strategic priorities in Baghdad versus the autonomy of the Kurdistan Regional Government. The move toward zero direct funding for the Peshmerga suggests that external security priorities have superseded previous bilateral agreements, forcing a re-evaluation of the relationship framed by the MOU.
A critical pattern emerges in the KRG’s response: the official confirmation of the end date (September 30) juxtaposed with subsequent diplomatic efforts to negotiate continuation demonstrates an attempt to manage immediate political fallout while preserving long-term strategic options. This maneuvering suggests that formal agreements are less binding than ongoing power negotiations. Furthermore, the simultaneous reporting on Iranian strikes introduces a layer of external volatility, suggesting that internal administrative and financial decisions occur within a broader context of regional conflict where actors—both regional governments and external powers—are simultaneously exerting pressure. The framing allows the reader to see how structural institutional support is leveraged as a tool in a wider geopolitical contest, where adherence to formal structures can be deliberately undermined by shifting external interests and internal power plays.
Bridge questions: What are the precise legal or operational mechanisms that allow for such rapid termination of funding commitments within international defense frameworks? How do regional security developments, such as Iranian drone activity, influence the perceived stability of these bilateral financial arrangements? What are the long-term consequences for Kurdish self-determination when external support structures are subject to immediate fiscal redirection?
Sentinel — Human
This analysis appears to be a factual news report synthesizing reports regarding US funding decisions and regional security events, exhibiting typical journalistic structure and specific attribution markers.