Iraq's financial free ride may be over.

After five years, Republicans and Democrats seem to have found common ground on at least one aspect of the war. From the fiercest foes of the war to the most steadfast Bush supporters, they are looking at Iraq's surging oil income and saying Baghdad should start picking up more of the tab, particularly for rebuilding hospitals, roads, power lines and the rest of the shattered country."It's not right that the America taxpayer should be forced to borrow more money from China that we have to repay with interest when the Iraqis can do more themselves," said Sen. Evan Bayh, D-Ind.

He said the Iraqi government has an oil windfall of at least $30 billion.

"They should be required to spend every penny of it before the American taxpayers are asked for more," he said.  

Bayh is drafting legislation with Sens. Ben Nelson, D-Neb., and Susan Collins, R-Maine, that would restrict future reconstruction dollars to loans instead of grants.

Bayh was part of an unsuccessful effort to include a similar proposal to a 2003 war spending bill.  He said chances for success are greater now because of the oil revenue and because "people are tired of spending this kind of money in Iraq when we have so many pressing needs here at home."

Their bill also would require that Baghdad pay for the fuel used by American troops and take over U.S. payments to predominantly Sunni fighters in the Awakening movement. Plans are to propose the legislation as part of a war bill to cover spending through September.

Likewise, Sen. Carl Levin, D-Mich., chairman of the Armed Services Committee, said he wants to add a provision to a defense policy bill that would force the Iraqi government to spend its own surplus in oil revenues to rebuild the country before U.S. dollars are spent.

These senators could find allies in lawmakers who support Bush's current Iraq policies. In hearings last week, Lindsey Graham, R-S.C., raised the possibility that an anticipated Iraqi budget surplus this year could be used to help Afghanistan, whose $700 million in annual revenue represents a small fraction of Iraq's $46.8 billion budget.

Bush has suggested that Congress is preaching to the choir. Last week, he noted that Baghdad's latest budget would outspend the U.S. by more than 10-to-1 on Iraq reconstruction, with American funding for large-scale projects "approaching zero."

Lawmakers are skeptical. Considering that past predictions on Iraq have fallen short, the legislation would ensure Iraq assumes more of the financial burden, they say.

On the surface, it looks as though the U.S. has about split the costs of rebuilding efforts with the Iraqis: Congress has appropriated about $47.5 billion since 2003, while the Iraqis have budgeted $50.6 billion. International contributions have totaled $15.8 billion.

And, as Bush pointed out, Iraq's latest budget is on track to outspend the U.S. when it comes to rebuilding. Baghdad has devoted $13.4 billion in 2008 for capital expenses, more than a quarter of its $48.6 billion budget.

However, there is a key difference: Whereas the U.S. has spent most of the money it has approved, Iraq hasn't, according to the watchdog agency that audits reconstruction efforts. In 2006 and 2007, for example, Iraq spent only $2.9 billion of its designated $16.3 billion capital budget, which is used to invest in reconstruction projects.

Levin said he doesn't Bush's declaration that the U.S. is no longer in the business of major reconstruction. Congress received notice on April 3 that the Pentagon planned to transfer $590 million in its war budget to cover construction and infrastructure improvements for Iraq security forces.

A primary cause for the unhappiness in Congress is the high price of oil as the U.S. heads into election season. While Americans are complaining of gasoline prices, officials predict Iraq is headed toward a major windfall because of the soaring price of oil and record-setting production levels.

While early estimates suggest Iraq's oil revenue would reach $35 billion this year, it could climb as high as $60 billion, said Stuart Brown, special inspector general for Iraq reconstruction, in a March hearing.

The country's 2008 budget of $46.8 billion was calculated based on $57 per barrel of oil, roughly half the market rate, the inspector general noted in its latest report.

Meanwhile, American troops in Iraq are buying fuel on the open market at $3.23 a gallon and spending some $153 million a month, according to a recent report by The Associated Press.

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