US plans to cut off military aid to key Middle East ally, BBC told

August 28, 2026

The Trump administration plans to end military aid to Iraq's Kurdistan region by not renewing an expiring agreement that provides security assistance to the Peshmerga Kurdish forces, according to four sources familiar with Pentagon discussions. This decision comes as the region faces intensified attacks from Iran, with 158 missile or drone strikes recorded by late May, following Trump's initiation of conflict with Tehran. The memorandum of understanding providing $61 million annually for weapons, training, and stipends is set to expire on September 30, 2026, coinciding with the withdrawal of remaining U.S. troops from Iraq.

Who is affected

The Peshmerga (Kurdish security force with approximately 180,000 troops)
Leaders and officials of Iraq's Kurdistan Regional Government (KRG)
Residents of Iraqi Kurdistan who face Iranian attacks
The Trump administration and U.S. Department of Defense
Iraqi Prime Minister Ali al-Zaidi
Iran and Iranian-backed militias
Coalition nations withdrawing troops from Iraq

What action is being taken

Iran and Iranian-backed militias are conducting missile and drone attacks against Iraqi Kurdistan (158 attacks by late May)
The U.S. and other nations are withdrawing their last remaining troops from Iraq
The sole remaining U.S. military base in Irbil is closing next month
Pentagon officials are conducting meetings with Iraqi and Kurdish leaders about the expiring agreement
The U.S. is considering ways to maintain some security support in Iraq and Iraqi Kurdistan after troop withdrawal

Why it matters

This decision represents a significant betrayal of a longtime U.S. ally that sacrificed heavily to help defeat ISIS, undermining American credibility in the region. The funding cut creates a dangerous power vacuum at a moment when Iranian attacks against Kurdistan are surging, potentially emboldening adversaries including Iran, China, and Russia. The move signals that the U.S. cannot be trusted to support its partners, which could have long-term implications for America's ability to build alliances in the Middle East and beyond.

What's next

The memorandum of understanding between the Pentagon and KRG is set to expire on September 30, 2026
The last remaining U.S. troops will complete their withdrawal from Iraq on September 30
The U.S. military base in Irbil is set to close next month
A final decision on security engagement between the U.S. and Kurdistan is still under review
The Pentagon's fiscal year 2027 budget request (which proposes cutting all Peshmerga security aid) remains on hold amid a broader Congressional budget battle

Read full article from source: BBC