US Freezes $500M to Iraq, Pressures Militias

0:00It's April 22, from coast to coast. This is U.S. News Today, powered by AI. I'm Cory with the story. The Trump administration just hit pause on sending Iraq near the $500 million in cash, pulling from their oil money stashed at the new. York Federal Reserve. This move ramps up pressure on Baghdad to crack down on Iran, backed militias hitting U.S. targets. It's the second cash block like this, since late February clashes kicked off between the U.S., Israel, and Iran. Washington is also holding back some military training funds and counterterrorism cash until those attacks stop and the militias get dismantled. Iraq's central bank tried to play a cool Tuesday, claiming they've meant all dollar requests from local banks, but they skipped any mention of the frozen shipment. This cash pipeline has been key for Iraq's economy since 2003, with billions flown in yearly to fuel their cash heavy system. US officials call it temporary, but they're clear, no more tolerance for militia strikes

1:02or government cover for groups like a Tayyip Hezbollah, and a Seabaha al-Haq, which hold big sway in politics and even official security forces. As Iraq picks its next prime minister, Tehran and these factions push for Iran friendly leaders, but America's drawing a hard line to shift Baghdad away from that orbit and protect its interests.