US Ends Military Aid to Iraqi Kurds by September 30, 2026

The Trump administration will not renew military aid to Iraq’s Kurdish Peshmerga forces after a security agreement expires on September 30, 2026. The Pentagon informed Kurdish leaders in recent meetings that counter-terrorism funding and institutional reform support will end as US troops withdraw from Iraq. The Peshmerga received $61 million in fiscal 2026 for weapons, training, and stipends. Kurdish officials worry the cut will create a power vacuum and embolden Iran, which has fired hundreds of missiles and drones into Iraqi Kurdistan since Trump started a war with Tehran six months ago.

Pentagon ends four-year security pact with Kurdish forces

The memorandum of understanding between the Pentagon and the Kurdish Regional Government expires September 30, 2026, the same day the US and coalition partners withdraw their last remaining troops from Iraq. The four-year framework, signed in 2022, aimed to bolster regional defense and facilitate structural reforms within the Kurdish security apparatus. Pentagon budget projections show a steady de-escalation from substantial multi-million-dollar counter-terrorism packages to baseline medical and logistical provisions only.

Trump administration scales back Middle East commitments

Defense Secretary Pete Hegseth met with Iraqi Prime Minister Ali Al-Zaidi in July to discuss the transition. Victoria Taylor, former US Deputy Assistant Secretary of State for Iraq and Iran and director of the Iraq Initiative at the Atlantic Council, noted that the shift reflects a broader recalibration of international assistance under Trump’s second-term directive to reduce overseas military commitments. The US is also closing its only remaining military base in Iraq, located in Irbil, Kurdistan’s capital.

Kurds fear Iranian expansion without US backing

Kurdish officials worry the funding cut will create a power vacuum and embolden Iran. Yerevan Saeed, director of the Global Kurdish Initiative for Peace at American University, said the US would be cutting off the Kurds, who shed so much blood to help the Americans achieve their goals in Iraq. He warned this outcome would be a major victory for Iran, China, and Russia. The Peshmerga, which has about 180,000 troops, has been a critical partner in the fight against the Islamic State group.

Uncertainty over post-withdrawal security arrangements

A Pentagon source said a final decision is still under review and Washington is considering ways to maintain some security support after the withdrawal. However, no comprehensive arrangements have been announced for providing air defense or protection against missile strikes and drone attacks. The question of whether Iraqi federal forces will assume control of bases and provide sustained protection for Kurdistan’s airspace remains unresolved.

Final Thoughts

With the security agreement ending September 30 and US troops withdrawing, the Peshmerga faces an uncertain future. Investors and policy observers should monitor whether the administration reverses course or establishes alternative support mechanisms before the deadline.

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