Iraq: Recent Developments in Reconstruction Assistance [Updated December 20, 2004]   [open pdf - 117KB]

"Large-scale reconstruction assistance programs are being undertaken by the United States following the war with Iraq. To fund such programs, Congress approved on April 12, 2003, a $2.48 billion Iraq Relief and Reconstruction Fund in the FY2003 Supplemental Appropriation. On November 6, 2003, the President signed into law P.L. 108-106, the FY2004 Emergency Supplemental Appropriation, providing $18.4 billion for Iraq reconstruction. 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. Security Council Resolution 1546 of June 8, 2004, returned control of assets held in the Development Fund for Iraq to the government of Iraq. Many reconstruction efforts on the ground are underway, but security concerns have slowed progress considerably. Most reconstruction funding is targeted at infrastructure projects -- roads, sanitation, electric power, oil production, etc. Aid is also used to train and equip Iraqi security forces. However, of the $18.4 billion appropriated by Congress in October 2003, only $9.6 billion had been obligated and $2.1 billion spent by mid-December 2004. Congress approved on September 29 an Administration-proposed re-allocation of $3.5 billion in previously appropriated reconstruction funds to give greater emphasis to security, employment generation, and debt relief."

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CRS Report for Congress, RL31833
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