Trump Halts Security Funding for Allied Forces in Iraq
The US government plans to halt military and security assistance to its main ally in the Middle East that helped the US defeat the Islamic State (ISIS) group. The US Department of Defense has informed leaders of the semi-autonomous Kurdistan Region of Iraq of the plan.
The move follows the Pentagon’s decision not to extend a security assistance memorandum of understanding (MoU) that will expire on 30 September 2026, coinciding with the full withdrawal of coalition forces from Iraq.
The decision by the Donald Trump administration has sparked deep concern in the region, given that Peshmerga forces were a key US ally in crushing the ISIS terrorist group. At the same time, the Kurdistan Region of Iraq is now facing an increasing intensity of missile and drone attacks from Iran amid the escalating conflict between Tehran and Washington.
Several analysts assess that the cessation of the 61 million US dollar military budget allocation could potentially create a power vacuum in northern Iraq. This condition is seen as likely to weaken the position of US allies while providing a strategic opportunity for the expansion of Iranian, Chinese, and Russian influence in the Middle East.
The halt in assistance marks the end of the international military mission in Iraq. The last American military base located in Irbil is scheduled to officially close next month as all combat personnel are repatriated.
The White House and the US Department of Defense stated that the Iraqi Security Forces, including Peshmerga units, are now considered capable of leading security operations independently following the defeat of ISIS. The US government emphasised that its main focus at present is completing the troop withdrawal process and supporting the Iraqi government under Prime Minister Ali al-Zaidi in safeguarding the country’s sovereignty from external militia threats.
Nevertheless, US defence officials are reported to still be reviewing a new bilateral security cooperation scheme with Baghdad to ensure regional stability is maintained after 1 October 2026.