The US intervenes in the salary funding crisis between Baghdad and Erbil.

 The US intervenes in the salary funding crisis between Baghdad and Erbil.

The US State Department called on the federal government and the Kurdistan Region to abide by the financial payments stipulated in the Iraqi constitution and work to resolve their differences through constructive dialogue.

A US State Department official said, "Swiftly resolving the salary issue sends a message that Iraq puts the interests of its people first and creates an attractive environment for investment," noting that "it would also be a positive signal regarding the possibility of reopening the Iraq-Türkiye pipeline."

He stressed that "US support for the Kurdistan Region is a key component of its relationship with Iraq," noting that "US Secretary of State Marco Rubio recently hosted the Prime Minister of the Kurdistan Region, Masrour Barzani, and also spoke with the President of the Region, Nechirvan Barzani, where they emphasized the importance of continued cooperation to promote stability and prosperity in Iraq and the region."

These statements come as the Kurdistan Region's civil servants' salaries are facing a new crisis, following the federal Ministry of Finance's announcement that it would halt funding for May 2025 salaries. The announcement was made due to what it described as the region's exceeding its budget share and its failure to deliver oil and non-oil revenues.

Erbil recently signed two agreements with American companies worth more than $110 billion in the energy sector. This sparked criticism in Baghdad, which considered it an infringement of its sovereign powers. Erbil, however, views the agreements as part of its plan for economic reform and resource development.   link