Changes in the U.S. Support Strategy for Iraq: A Budget for Counterterrorism at the Expense of the Peshmerga and Defense

The American network "The Monitor" published details of the draft U.S. defense budget for 2026, which showed significant changes in the mechanism of support provided to Iraq. The draft indicates Washington's direction towards reducing aid allocated to the Iraqi Ministry of Defense and Peshmerga forces, in favor of a substantial increase in support directed to the Counter-Terrorism Service.

According to the network's report, the United States intends to stop funding the salaries of Peshmerga forces, a responsibility that will be fully transferred to the Iraqi government, after years of direct American support.

The draft also included a reduction in financial support for the Iraqi Ministry of Defense from $189.1 million in 2025 to only $48.2 million in 2026, in a move that reflects a reevaluation of the security partnership priorities between the two countries.

In contrast, the share of the Iraqi Counter-Terrorism Service from U.S. support will significantly increase, as it has been allocated $63.6 million, compared to $9.3 million in the previous year. This increase is part of a "strategic shift" in Washington's vision of its role within Iraq, according to the network's report.

The report revealed that this shift is not limited to Iraq only, but is accompanied by continued U.S. support for the Syrian Democratic Forces (SDF) in Syria. Sources from "The Monitor" indicate that Washington now considers the Iraqi Counter-Terrorism Service as a balancing force against the armed factions linked to Iran within Iraq, reflecting a political and security dimension to this new direction in American policies.