ERBIL, Kurdistan Region - The United States is pressuring Baghdad to resolve the ongoing budget dispute with Erbil that has left over one million Kurdistan Regional Government (KRG) civil servants unpaid, Iraq’s former deputy finance minister said on Wednesday, with tensions high between Iraq and the Kurdistan Region over budgetary issues. “There is a large pressure from the Americans on Iraq to resolve the [budget] issue,” said Iraq’s former Deputy Finance Minister Rebaz Hamlan, adding that Kurdistan Region Prime Minister Masrour Barzani is in “continuous contact with the international community” in efforts to address the crisis. On Wednesday, Shakhawan Abdullah, second deputy speaker of the Iraqi parliament, told Rudaw that “the US State Department contacted [us] by phone and inquired about the situation [regarding the salary delays].” We will not allow the parliament to convene … until the issue of the Kurdistan Region’s civil servants’ salaries is resolved,” Abdullah affirmed. The US on Tuesday urged both the Iraqi federal government and the KRG to resolve their disputes through dialogue, with State Department spokesperson Tammy Bruce affirming Washington’s commitment to a “strong and resilient” Kurdistan Region as a key part of its partnership with Iraq. Bruce added that Secretary of State Marco Rubio has emphasized to senior Iraqi officials - including Prime Minister Mohammed Shia’ al-Sudani, and to Kurdish leaders such as President Nechirvan Barzani and Prime Minister Barzani “the importance of stability and prosperity in Iraq and the region.” Also on Tuesday, the UN special representative for Iraq, Mohamed al-Hassan, called for dialogue between Baghdad and Erbil to resolve ongoing disputes. Tensions between Erbil and Baghdad have intensified in recent weeks after the federal government halted budget transfers to the KRG. Iraqi Oil Minister Taif Sami accused Erbil of exceeding its 12.67 percent share of the 2025 federal budget by over 13.5 trillion Iraqi dinars (approximately $10.34 billion), citing rulings by Iraq’s Federal Supreme Court, which prohibit further disbursements under such conditions. The decision has left more than 1.2 million public sector employees in the Kurdistan Region without pay, sparking harsh criticism from Kurdish parties, who say the move is politically motivated.
