In a statement posted on social media on Thursday, US officials said they are seeking information on the group’s leader, Hashim Finyan Rahim al-Saraji, also known as Abu Alaa al-Walai.
Washington accused the group of involvement in attacks on civilians and US interests in the region.
“The group has killed Iraqi civilians and attacked US diplomatic facilities in Iraq, as well as US military bases and personnel in Iraq and Syria,” the statement said.
Authorities noted that individuals who provide credible information may be eligible for relocation in addition to the financial reward.
Al-Saraji is reported to hold a position within Iraq’s ruling Shiite alliance, the Coordination Framework, which commands a parliamentary majority.
Iran-backed armed groups have in recent years targeted the US embassy in Baghdad, logistics facilities at the capital’s airport, and oil installations operated by foreign companies.
The development comes amid heightened tensions in the Middle East following the escalation of conflict involving the United States, Israel and Iran.
Earlier this month, Washington announced a similar reward for the leader of Kataeb Hezbollah, another Iranian-backed group accused of abducting a US journalist.
The US has also reportedly increased pressure on the Iraqi government to rein in pro-Tehran militias, including suspending cash shipments and freezing funding for certain security programmes.
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