Washington- Senators Ben Nelson (D-NE), Susan Collins (R-ME), and Evan Bayh (D-IN) are calling on President Bush to press to ensure that the Iraqis are making “increasing investments in their own future.” A recently released Government Accountability Office (GAO) report verifies what the Senators have long been saying: The Iraqi government is benefitting from an oil revenue windfall and has the ability to take on greater responsibility for the costs of its reconstruction and stabilization, thus easing the burden on the American taxpayer. The Senators have coauthored a provision that was included in the Senate version of the FY 2009 National Defense Authorization Act and would transfer financial responsibility for all major reconstruction and some operations costs from the American taxpayer to the Iraqi government.

The text of the Senators’ letter to the President is as follows:

August 7, 2008

Dear Mr. President:

The recently released Government Accountability Office (GAO) report detailing Iraqi revenues, expenditures, and surpluses underscores the need for our legislation requiring the Iraqi government to assume greater responsibility for its own reconstruction, security, and stability costs. The report clearly verifies the stronger financial position of the Iraqi government due to an unanticipated windfall from oil revenues. The GAO projected that Iraq could earn between $67- $79 billion in revenue from oil sales in 2008 alone, twice the average annual amount from 2005-2007.

Despite these rapidly increasing oil revenues, the government of Iraq has not adequately invested in reconstruction efforts in its own country, spending just 28 percent of its $12 billion investment budget. In addition, approximately $29 billion in surplus funds went unused between 2005 and 2007. While the United States is struggling with high energy costs, a bleak economic outlook, and a burdensome deficit, record oil prices mean the Iraqi government is reaping a cumulative surplus which could add up to nearly $80 billion by the end of this year.

American taxpayers continue to shoulder the costs of Iraqi reconstruction at a time when the government of Iraq is facing windfall profits from oil revenues. We have repeatedly called for an end to this blank check policy and a requirement that the Iraqi government take greater responsibility for the costs of its reconstruction and stabilization.

As part of the Fiscal Year 2009 National Defense Authorization Act, we authored and passed provisions transferring financial responsibility for all major reconstruction and some operations costs from the American taxpayers to the Iraqi government. Under our amendment, the expenditure of U.S. funds for major reconstruction projects in Iraq would be prohibited; and the United States would work to shift to Iraq the costs of the salaries, training and equipping of Iraqi security, joint operations with coalition forces, and certain smaller-scale reconstruction projects.

The Administration has repeatedly assured us that the transition to the Iraqi government taking responsibility for the costs of reconstruction is underway and that the Iraqis are taking significant steps toward investing in their own future, but the GAO report indicates insufficient progress. In light of Iraq’s windfall oil revenues and increasing budget surpluses, we request further details of the steps the Administration has taken with the government of Iraq to increase that country’s investment in its own reconstruction and stabilization, together with plans to ensure that American taxpayers do not continue to foot the bill for these efforts.

It is time for Iraq to invest in its own future and to reduce the burden to the American taxpayer. We look forward to hearing your plans to ensure that the Iraqis are making increasing investments in their own future.

Sincerely,

E. Benjamin Nelson

Susan M. Collins

Evan Bayh

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