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Summary:
Large-scale 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. In February 2006, the Administration requested $749 million for economic reconstruction-related programs in its FY2007 foreign operations budget. It also requested $1.6 billion to support similar programs in an FY2006 emergency supplemental and $3.7 billion for training of Iraqi security forces. Both House and Senate-approved versions of the supplemental provide roughly $1.6 billion in economic aid. The House provides $3.0 billion for Iraqi security forces while the Senate meets the Administration request. Contributions pledged by other donors at the October 24, 2003 Madrid donor conference and in subsequent meeting have amounted to roughly $14.6 billion in grants and 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 nearly $21 billion appropriated to the Iraq Relief and Reconstruction Fund in the FY2003 and 2004 supplementals, $19.0 billion had been obligated and $14.3 billion spent by early May 2006. 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.
