Washington—The first bipartisan effort to change U.S. Iraq policy advanced late yesterday when a provision authored by Senators Evan Bayh (D-IN), Ben Nelson (D-NE) and Susan Collins (R-ME) was included in the Senate Appropriations Committee’s Iraq War Supplemental markup. The provision would transfer financial responsibility for reconstruction and some operations costs from the U.S. taxpayer to the Iraqi government.

Under the Bayh-Nelson-Collins plan, use of U.S. taxpayer funds for major reconstruction projects in Iraq costing more than $2 million will be banned, and Iraq will be required to cover all or part of the costs of small-scale reconstruction projects, joint missions with coalition forces, and training and equipment for their own troops.

“We are sending hard-earned American taxpayer dollars down a black hole,” said Senator Bayh. “Our first priority is to the American people. It’s time to stop payment on these blank checks to Baghdad.”

The Bayh plan requires Iraq to obligate Iraqi funds for reconstruction projects before any future U.S. aid for reconstruction is obligated. The language also requires the President to craft a cost-sharing agreement with the Iraqi government for Coalition-Iraqi combined operations as part of Operation Iraqi Freedom. The provision also shifts to the Iraqis the costs of the salaries, training, equipping, and sustaining of Iraqi Security Forces and the Sons of Iraq.

Since the 2003 invasion, Congress has appropriated approximately $47.5 billion in U.S. taxpayer dollars for Iraqi reconstruction while the Iraqi government has spent a fraction of that amount.

It is projected that Iraq’s oil windfall revenue will likely top $70 billion this year.  The windfall is on top of the billions of dollars the Iraqi government already has invested in foreign banks, including an estimated $30 billion sitting right now in American banks. 

“We all want to see the Iraqis rebuild their country and become a stable democracy. But given our own pressing domestic needs, we cannot continue spending billions in U.S. taxpayer dollars on reconstruction while the Iraqi government sits on surpluses,” Senator Bayh said. “The American taxpayer will not blindly write checks for capital projects the Iraqis should have a far greater sense of urgency to complete. We have our own schools, our own hospitals, and our own bridges and highways to build and repair.”

The Senate Appropriations Committee completed and approved the 2008 Iraq War Supplemental markup Thursday evening. The bill is expected to be considered by the full Senate next week.

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