Tillerson and Barzani are meeting on the sidelines of the World Economic Forum in Davos.
After a government impasse, the United States approved its 2018 budget that includes $365 for Kurdish Peshmerga on Wednesday, which the KRG "welcomed."
In a mid-January phone call between the two leaders, KRG readout said that the US pays attention to its relations with the Kurdistan Region and welcomes signs of development in talks between Erbil and Baghdad.
Tillerson greets the KRG delegation including PM Barzani, Deputy PM Qubad Talabani, DFR Head Falah Mustafa, and chief of staff to the Kurdish presidency Fuad Hussein in Davos on January 25, 2018. Video: Rudaw
The top US diplomat also then described the Iraqi constitution as a means for resolving the issues and expressed his readiness to support dialogue between Erbil and Baghdad. Barzani emphasized that the KRG was always ready for talks and dialogue with Baghdad.
Barzani and Iraqi Prime Minister Haider al-Abadi have met twice this week, in Baghdad and Davos.
The United States also passed legislature that will allow more State Department funding to go directly to religious non-governmental organizations, especially those in the Middle East, thus bypassing UN bodies.
Current and former heads and leaders of states and governments from more than 60 countries and nations are attending the 48th Davos.
They are courted by more than 1,700 leaders of business and industry.
The event runs from Tuesday through Friday.
