US plans to cut off military aid to key Middle East ally, BBC told

The Trump administration plans to cut off military aid to Iraq's Kurdistan region, according to four sources familiar with internal Pentagon discussions. A security assistance agreement with the Kurdish Peshmerga force, which received $61 million in fiscal 2026 for weapons and training, expires September 30 as US troops withdraw from Iraq. Kurdish officials warn the funding cut would create a power vacuum amid intensifying Iranian drone and missile attacks on the region, undermining a key US ally that fought alongside American forces against the Islamic State.

The Pentagon proposed eliminating all Peshmerga security aid in its fiscal 2027 budget request, arguing that with IS defeated, resources should be reallocated elsewhere. The 180,000-strong Kurdish force has endured 158 Iranian missile or drone attacks inside Iraqi Kurdistan as of late May. Analysts said ending support would damage US credibility with regional partners and benefit Iran, China, and Russia.