It appears the Trump administration is moving toward ending its $61m‑per‑year security package for Iraq’s Kurdish Peshmerga—a force that helped topple the Islamic State and now faces mounting attacks from Iran.

During recent Pentagon meetings with Kurdish officials, Washington officials declined to renew the memorandum of understanding that governs the Peshmerga’s training, weapons, and stipend. Four U.S. sources confirmed that the administration is not planning to extend the agreement, which expires on 30 September, the same day the last U.S. troops are scheduled to leave Iraq.

Kurdish leaders warn that a funding cut would leave the region without a critical ally and could embolden Iran, which has already launched 158 missile or drone strikes inside Iraqi Kurdistan. Analysts say ending the assistance would strike a blow to a long‑time partner and signal a lack of trust in U.S. commitments in the region.

While the U.S. government has not officially confirmed the decision, it is reviewing how to maintain limited security support after troop withdrawal, according to senior Pentagon officials. The Pentagon’s change in fiscal 2027 planning reflects a desire to reallocate resources now that the primary fight against ISIS has ended.