ERBIL, Kurdistan Region of Iraq – The Kurdistan Regional Government (KRG) on Sunday denied reports that US support for the Peshmerga forces has been suspended, saying logistical and financial assistance remains in place.

The statement addresses recent rumors circulating on local media, claiming that Washington has abandoned cooperation with the Peshmerga and suspended funding in its 2027 budget.

“These rumors are baseless, and the support process continues in accordance with the joint understanding signed between the US Department of Defense and the Ministry of Peshmerga,” the Peshmerga ministry said in a statement.

The ministry noted that the suspension only applies to the counter-terrorism cooperation against the Islamic State (ISIS), citing a “limitation and reduction of ISIS terrorist activities.”

In 2022, the Erbil and Washington signed a four-year Memorandum of Understanding (MoU) to support the reform and unification of the Peshmerga forces, with the goal of completing the process before October 2026.

The agreement provided financial and military support for the integration of the Kurdistan Democratic Party’s (KDP) Unit 80 and the Patriotic Union of Kurdistan’s (PUK) Unit 70, which make up the majority of the Peshmerga forces, under the Ministry of Peshmerga.

Regarding the approaching deadline, the Peshmerga ministry asserted that negotiations are expected to take place in the near future “to sign a new agreement between both sides.”

According to a proposed 2027 budget bill, the Peshmerga Ministry is allocated $0 under the Counter-ISIS Train and Equip Fund (CTEF), down from more than 61-million-dollar in 2026. The bill reserves above 118 million dollars for federal Iraqi forces, signaling a drastic shift in the US’ counter-terrorism support towards Baghdad.

Established in 2014, the CTEF is a US program that supports Iraqi forces, including the Kurdistan Region’s Peshmerga, as well as security forces in Syria and Lebanon in the fight against ISIS.

It has for years provided funding, training, and equipment to sustain operations against the group’s remnants in the region.