The United States is reportedly weighing a new cut to aid for the Peshmerga. Four sources with direct knowledge of the talks told the BBC that the Pentagon has informed officials in the Kurdistan Regional Government of Iraq that it does not currently plan to renew the memorandum that provides security support to Peshmerga forces when it expires.

The agreement runs out on Sept. 30. The date also coincides with the schedule for the United States and coalition countries to withdraw their remaining troops from Iraq, a move that would formally end the international military campaign against ISIS.

The Peshmerga forces in Iraq’s Kurdistan Region number about 180,000 personnel. Under the Pentagon’s anti-ISIS program, the force received $61 million in fiscal 2026 for weapons, military training and stipends. According to the report, the Pentagon has proposed eliminating all of this security assistance in its fiscal 2027 budget request, though the spending plan is on hold amid broader budget discussions in Congress.

Kurdish officials fear that ending the aid could create a power vacuum in the region and increase Iran’s influence. Those concerns are being raised at a time when attacks by Iran and Iran-backed groups on Iraq’s Kurdistan Region have intensified. Data compiled by the Washington-based Foundation for Defense of Democracies show 158 missile or drone attacks had been recorded inside Iraq’s Kurdistan Region as of the end of May.

A source close to the matter said the United States is still reviewing its final decision on security engagement with Iraq and Iraq’s Kurdistan Region. According to the sources, Washington is also considering ways to maintain at least limited security support mechanisms in both Iraq and the Kurdistan Region after the troop withdrawal.

The White House referred the BBC’s questions to the Pentagon. A Pentagon spokesperson pointed to a summary of Defense Secretary Pete Hegseth’s meeting in July with Iraqi Prime Minister Ali al-Zaidi. The U.S. State Department said its priority is to carry out the withdrawal process and preserve Iraq’s sovereignty. The Kurdistan Regional Government declined to comment.

Experts say ending Peshmerga support would affect not only the balance on the ground, but also the political message Washington sends to its partners in the region. The debate has also emerged as the last U.S. base in the country, in Erbil, is expected to close next month after the coalition withdrawal.