Shafaq News – Washington
Washington is preparing its largest
cut in military funding to Iraq since launching its anti-ISIS support program
in 2014, according to exclusive Pentagon documents obtained by Shafaq News.
The Counter-ISIS Train and Equip
Fund (CTEF) budget for 2026 shows Iraq’s overall allocation reduced by nearly
half and the complete termination of the Peshmerga salary program, shifting the
full cost of funding the Kurdish force to the Iraqi government—despite the
unresolved salary dispute between Baghdad and Erbil.
The move coincides with plans to end
the US-led Coalition’s mission in Iraq, reflecting a shift toward a “capable
partner” model based on advanced equipment and intelligence support rather than
sustained financial aid. In Baghdad and Erbil, where political and fiscal
disputes remain, the decision fuels concerns over a potential security gap at a
highly sensitive regional moment.
2014 Program Origins
A senior Pentagon official told
Shafaq News that direct US assistance to the Peshmerga and Iraqi forces began
in the summer of 2014, when ISIS overran large parts of northern Iraq and
advanced toward the Kurdistan Region’s borders. On August 5 that year,
Washington delivered urgent ammunition shipments to the Peshmerga, followed
three days later by US airstrikes, making the force the first line of defense
against the group.
With the creation of CTEF, support
for the Peshmerga and Iraqi forces was consolidated under a single framework to
enable local partners to conduct operations against ISIS, covering training,
equipment, and logistics. In the years that followed, the program expanded to
include the Iraqi Army, Counter-Terrorism Service (CTS), and Interior Ministry
units, with fixed allocations for Peshmerga salaries.
The 2026 budget justification
confirms that this will be the final year for salary payments under a
memorandum of understanding signed in September 2022 between the Pentagon and
the Kurdistan Regional Government (KRG), transferring full responsibility to
Baghdad starting in 2026. Funding data shows the salary line at $135 million in
2024, falling to $60 million in 2025, and to zero in 2026. The document
stresses that all units receiving support are subject to strict vetting,
including the Leahy Law, to prevent funding to any force implicated in rights
abuses or linked to designated terrorist groups or the Iranian government.
What Iraq Will Receive
Despite the cut, the budget
preserves core procurement aimed at strengthening operational independence,
including for the Ministry of Defense:
-$1.5 million
oxygen generation system for AC-208 aircraft to improve altitude safety and
reconnaissance missions.
-$3 million
air-to-ground communication system for F-16s to enable command and control
without Coalition reliance.
-100 Hellfire
missiles worth $12 million to support precision strikes.
-$10 million in
communications equipment.
-$21.919
million in ISR assets for Common Interest Area Brigades.
The CTS receives $65.6 million for
training and equipment, including a $12.6 million ISR drone system and $20
million in communications upgrades, along with $17.24 million for logistics and
$20.25 million for sustainment.
Peshmerga: More Equipment, Pay Shift
to Baghdad
Support for the Ministry of
Peshmerga Affairs will rise to $61 million in 2026, up from $4.9 million in
2024 and $57.8 million in 2025, covering four main packages:
-Ammunition:
17,000 mortar/rocket rounds ($5.3 million+).
-Weapons:
10,000 light arms, mortar/rocket launchers, scopes, and accessories ($11.08
million).
-Vehicles: 250
service vehicles, 52 armored vehicles, water trucks, and rescue vehicles ($27.5
million).
-Individual and
logistical gear: 11,295 body armors, 49,589 uniforms, 13,000 protective kits,
and 12 generators ($17.1 million).
The document outlines a
restructuring through 2026 into six operational commands, regional guard
brigades, training centers, a staff college, and logistics and technical
support commands.
These steps are in line with the
September 21, 2022 memorandum between the Pentagon and the Ministry of
Peshmerga Affairs, which ties continued support to reforms aimed at unifying
the forces under the ministry and eliminating partisan duplication.
Syria and Lebanon: Adjusted Funding,
New Entry
In Syria, $130 million is allocated to sustain partner pressure on
ISIS cells and maintain secure and “humane” detention of its fighters, down
slightly from $147.9 million in 2025.
For the first time, Lebanon appears
in the budget with $15 million to strengthen Lebanese Army
capabilities—particularly special units—and prevent exploitation of the
Syria-Lebanon border.
Beyond The Numbers
The financial shift aligns with the
September 2024 US-Iraq agreement to end the Coalition’s mission in Iraq by
September 2025 and move to bilateral security partnerships, while maintaining
the Syria mission. Shafaq News has learned that the Coalition has already begun
evacuating Iraqi sites under the agreed timetable. Current US deployments are
estimated at 2,500 troops in Iraq and 900 in Syria.
Pentagon budget documents project US
troop levels under Central Command to average 43,460 in 2024, rise to 49,998 in
2025, and drop to 45,729 in 2026—reflecting a planned drawdown as local
partners assume greater responsibility.
According to the Pentagon official,
the decision reflects the “work accomplished” in building infrastructure and
capabilities, as the Combined Joint Task Force – Operation Inherent Resolve
transitions from direct combat.
However, reports by US inspectors
general warn that ISIS remains capable of reorganizing in rural pockets and
urban outskirts, and that reduced resources or logistical access could expand
its operational space.
For Shafaq News, Mostafa Hashem,
Washington, D.C.
