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RL31833
Iraq: Recent Developments in Reconstruction Assistance
January 04, 2006

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U.S. Department of State
University of North Texas Libraries

Summary:

Large-scale reconstruction assistance programs are being undertaken by the United States following the war with Iraq. To fund such programs, in April 2003, Congress approved a $2.48 billion Iraq Relief and Reconstruction Fund (IRRF) in the FY2003 Supplemental Appropriation. In November 2003, the FY2004 Supplemental Appropriation provided an additional $18.4 billion for the IRRF. The FY2005 Emergency Supplemental signed into law in May 2005 provides $5.7 billion in a new Iraqi Security Forces Fund for the training and equipping of Iraqi security forces. Contributions pledged at the October 24, 2003 Madrid donor conference by other donors amounted to roughly $3.6 billion in grant aid and as much as $13.3 billion in possible loans. On June 28, 2004, the entity implementing assistance programs, the Coalition Provisional Authority (CPA), dissolved, and sovereignty was returned to Iraq. U.N. Security Council Resolution 1546 of June 8, 2004, returned control of assets held in the Development Fund for Iraq to the government of Iraq. U.S. assistance is now provided through the U.S. embassy. Many reconstruction efforts on the ground are underway, but security concerns have slowed progress considerably. Of the nearly $29 billion in appropriated funds from all accounts directed at reconstruction purposes, close to 40% is targeted at infrastructure projects -- roads, sanitation, electric power, oil production, etc. About 38% is used to train and equip Iraqi security forces. A range of programs -- accounting for roughly 22% of appropriations -- are in place to offer expert advice to the Iraqi government, establish business centers, rehabilitate schools and health clinics, provide school books and vaccinations, etc. Of the $21 billion appropriated to the Iraq Relief and Reconstruction Fund in the FY2003 and 2004 supplementals, $17.7 billion had been obligated and $12.5 billion spent by end-December 2005. The report will be updated as events warrant. For discussion of the Iraq political situation, see CRS Report RL31339, Iraq: U.S. Regime Change Efforts and PostSaddam Governance, by Kenneth Katzman.

 

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