Iraq: Reconstruction Assistance

A large-scale assistance program has been undertaken by the United States in Iraq since mid-2003. To date, nearly $45 billion has been appropriated for Iraq reconstruction. On December 26, 2007, H.R. 2764, the FY2008 Consolidated Appropriations Act, was signed into law (P.L. 110-161). Although it specifically rejects most regular or supplemental economic assistance to Iraq under the State/Foreign Operations appropriations, it provides about $2.1 billion in reconstruction assistance, mostly for the training of Iraqi security forces. Congress is currently considering a $6.2 billion FY2008 and FY2009 supplemental request for Iraq economic and security reconstruction aid. 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. economic assistance is now provided through the U.S. embassy, while security aid is chiefly managed by the Pentagon. Reconstruction priorities have changed over time. Allocations within the Iraq Relief and Reconstruction Fund (IRRF), the main U.S. assistance account in the first few years, mirrored shifting events on the ground. However, funds shifted to security and democratization in the period from 2004 to 2006 meant fewer funds available for electric power and water projects. At this time, most large-scale infrastructure programs are no longer funded; however, many small-scale, targeted community-level infrastructure efforts are funded under the Commander's Emergency Response Program (CERP) and the Economic Support Fund (ESF). The key emphases of the aid program are the training of Iraqi forces and programs assisting the development of Iraqi governing capacities and supporting the work of the Provincial Reconstruction Teams (PRTs). CRS Report for Congress.