International coalition halts financial aid to Peshmerga

Peshmerga forces during a celebration in Erbil, the capital of the Kurdistan region of Iraq, in 2023. Photo: AFP Baghdad (IraqiNews.com) – The US-led international coalition has officially halted financial aid to Iraqi Kurdistan’s Peshmerga forces following the expiration of a four-year agreement. The Kurdistan Regional Government (KRG) and the United States Department of Defense inked an agreement that extended from September 21, 2022, until September 21, 2026. On Thursday, the troops received their final allowance for August and September 2026. According to the Secretary-General of the Ministry of Peshmerga Affairs, Bakhtiar Sadiq, the financial aid under the initial agreement was planned to steadily reduce by 25 percent each year until reaching a complete halt. This cash halt aligns with the overall conclusion of the international coalition’s military operations in Iraq, with a full stoppage of combat and training responsibilities expected by September 30, 2026. Additionally, the proposed US Counter-ISIS Train and Equip Fund (CTEF) plan for 2027 includes no support for the Peshmerga. The international coalition has tied its financial assistance to necessary reforms and the unification of the Peshmerga forces, particularly the integration of politically separated units. Earlier in September, the Kurdistan Regional Government (KRG) publicly announced that the unification process was complete. To address the newly established funding imbalance, the Ministry of Peshmerga Affairs has formally requested the federal government in Baghdad to adjust Peshmerga salaries to align them permanently with federal Iraqi military and security forces.