Pentagon Stops Paying Salaries To Peshmerga Forces

According to the new U.S. budget law and documents released by the Pentagon, the United States will stop directly paying the salaries of the Peshmerga forces in the Kurdistan Region of Iraq by the end of 2025. Starting in 2026, the central government in Baghdad will be fully responsible for providing salaries for these forces. This decision is part of a broader effort to redefine the U.S. role in Iraq and gradually reduce the coalition mission in the country.

A memorandum of understanding signed in September 2022 between the U.S. Department of Defense and the Kurdistan Region’s Peshmerga Ministry indicates that the budget for salary payments will gradually decrease, reaching approximately $135 million in 2024, about $60 million in 2025, and ultimately zero in 2026.

Despite this overall budget reduction in 2026, logistical support for Iraqi forces and the Peshmerga will continue. The Iraqi Ministry of Defense will still receive equipment including communication systems, Hellfire missiles, reconnaissance systems, and logistics services. Additionally, the Iraqi Counter-Terrorism Service will receive a package valued at over $65 million.

The U.S. decision to suspend payments to the Peshmerga forces marks a significant shift in Washington’s role in Iraq and sends a clear message to transfer security responsibilities to the central government in Baghdad. However, the Peshmerga forces’ financial dependence on foreign aid and the existence of parallel party structures present challenges to this transition. If Baghdad fails to provide salaries for these forces due to budgetary constraints or political disagreements with the Kurdistan Region, the risk of a security gap in northern Iraq may increase, which could have significant regional implications.