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Economic reconstruction and U.S. assistance.(Iraq: Post-Saddam Governance and Security)

Congressional Research Service (CRS) Reports and Issue Briefs

| June 01, 2009 | COPYRIGHT 2002 Congressional Research Service (CRS) Reports and Issue Briefs. (Hide copyright information)Copyright

The Bush Administration asserted that economic reconstruction would contribute to stability. (32) Since the fall of Saddam Hussein, a total of about $50 billion has been appropriated for reconstruction funding (including security forces). A major source of reconstruction funds was the Iraq Relief and Reconstruction Fund. About $20.9 billion was appropriated for the IRRF in two supplemental appropriations: FY2003 supplemental, P.L. 108-11, which appropriated about $2.5 billion; and the FY2004 supplemental appropriations, P.L. 108-106, which provided about $18.42 billion.

However, as violence began to diminish in late 2007 and 2008, the Bush Administration concurred with the substantial bipartisan sentiment that Iraq, flush with oil revenues, should begin assuming the financial burden for its own reconstruction and security costs. In FY2008 and 2009, U.S. aid to Iraq, particularly aid to the ISF, has fallen from earlier levels. In FY2009, including an FY2009 supplemental appropriation (H.R. 2346), about $609 million in civilian economic aid is to be provided, and $500 million for such functions have been requested for FY2010. For more detailed breakdowns of U.S. aid to Iraq, see CRS Report RL31833, Iraq: Reconstruction Assistance, by Curt Tarnoff.

The IRRF funds were spent as follows:

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