WASHINGTON DC - The United States’ Fiscal Year 2027 defense budget outlines a significant restructuring of its counter-ISIS campaign, including changes to financial assistance for Kurdish Peshmerga forces and Iraq.
The Counter-ISIS Train and Equip Fund (CTEF) request totals $303.1 million, aimed at supporting vetted partner forces across Iraq, Jordan, Lebanon, and Syria in ongoing operations against Islamic State (ISIS) remnants and networks.
In Iraq, the proposed budget allocates approximately $118.9 million for partner forces, including Baghdad’s defense ministry and counter-terrorism service. However, the Peshmerga ministry - the Kurdistan Region’s equivalent of a defense ministry - is slated to receive $0 in direct funding in the proposed 2027 budget, marking a notable shift in the structure of CTEF support.
If approved in its current form, the Kurdistan Region would be entirely deprived of this assistance, with US counterterrorism support shifting to Baghdad.
Asked about the issue, Republican Congressman Joe Wilson underlined to Rudaw the importance of ties with Erbil and Kurdish allies.
“Personally, I’ll be working with the administration [on this matter],” he said, adding that “the Kurdistan Regional Government and the Kurdish people are very important. We want their sovereignty to be maintained within Syria and Iraq. This will be considered.”
Democratic Congressman Seth Moulton said, “I think the entire budget deserves debate because it’s clear the government has no plan.” He added that “terrorism remains a threat, so we must support our allies,” noting that “the Kurds are a long-standing ally [of Washington]” and that “we should stand by them and invest in them.”
The FY2027 proposal comes amid an ongoing shift in US policy toward reducing direct military engagement while increasing reliance on regional partner forces to contain ISIS and prevent its resurgence across the Middle East.
Republican Congressman Rich McCormick told Rudaw, “I don't think we're going to have any cuts in military [funding],” instead, “I think we're going to serve our public by investing in our military,” he said.
Meanwhile, Democratic Congressman Joe Courtney remarked, “I just think there … could be a misuse of funds, but I want to see how they're using these dollars before I approve any additional money. We spent too much on a war already."
US Congressman Abe Hamadeh on Wednesday asked Defense Secretary Pete Hegseth during a House Armed Services Committee hearing whether it would be “wise” to centralize aid in Baghdad.
Hegseth responded that the Department of Defense is actively reviewing the effectiveness of counterterrorism efforts in Iraq and reassessing its posture and funding approach, indicating that adjustments to both funding and force presence remain under consideration based on evolving conditions on the ground.
Of note, in the 2026 budget, financial assistance to the Kurdish Peshmerga was completely cut. This year, training support could also be entirely removed, despite nearly $61 million being allocated for that purpose last year.