The United States is planning to end military aid to the Iraqi Kurdish Peshmerga forces as part of its broader withdrawal of troops from Iraq, according to multiple sources familiar with the situation. The decision, communicated by the US Department of Defense to leaders of Iraq’s semi-autonomous Kurdistan region, involves allowing an existing security agreement with the Kurdish Regional Government to expire on September 30, coinciding with the scheduled departure of US and coalition forces from Iraq.

The memorandum of understanding governing US military assistance to the approximately 180,000-strong Peshmerga has underpinned support including weapons, training, and stipends. In the 2026 fiscal year alone, the Pentagon allocated $61 million through a program aimed at countering the Islamic State group (Daesh). The withdrawal marks a formal conclusion to the international coalition effort that helped push back and dismantle Daesh’s control over territories in Iraq and Syria.

The US military base in Irbil, Kurdistan’s capital and the last remaining American facility in Iraq, is set to close following the withdrawal. While a final decision on the aid cut-off is still under review by Pentagon officials, there is consideration of maintaining some form of security cooperation with Iraqi forces post-withdrawal. Representatives from the White House and Department of Defense emphasized the progress made in defeating Daesh and underscored the expectation that Iraqi security forces, including the Peshmerga, will continue counterterrorism efforts independently.

Iraqi Prime Minister Ali Al-Zaidi, who took office in May, marked the troop withdrawal as a significant milestone for Iraq’s sovereignty. His office stated that October 1 would usher in a new phase, free from any foreign military presence. Al-Zaidi’s recent visit to Washington involved discussions centered on this transition and the potential for a bilateral security agreement between the US and the Iraqi government.

The US Embassy’s consulate in Irbil, opened last December at a reported cost of $800 million, symbolizes the enduring relationship between Washington and the Kurdish region despite the military drawdown. Michael Rigas, a senior State Department official, noted the installation as a testament to that partnership.

Experts estimate the number of remaining US troops in Iraq to be below 1,000, a stark decline from the 170,000 peak during the height of the Iraq War. The drawdown is also seen as a strategy to reduce the vulnerability of US forces to attacks, particularly from Iran-backed militias. Tehran has previously launched missile and drone strikes against US installations in northern Iraq, including Irbil.

Washington’s current emphasis lies on supporting Iraqi sovereignty and efforts led by Prime Minister Al-Zaidi to disarm militias aligned with Iran, which the US and Iraqi authorities view as destabilizing actors. Meanwhile, Baghdad and Washington continue to explore the framework for future defense cooperation, reflecting ongoing shifts in the regional security landscape as foreign military involvement diminishes.