This report analyzes war funding for the Defense Department and tracks funding for USAID and VA Medical funding. Information on costs is useful to Congress to assess the FY2010 Supplemental for war costs for the Department of Defense (DOD) and State/USAID, FY2011 war requests, conduct oversight of past war costs, and consider the longer-term costs implications of the buildup of troops in Afghanistan and potential problems in the withdrawal of U.S. troops from Iraq.

This report discusses Iraq's political system, which has been restructured through a U.S.-supported election process. The Iraqi government is increasingly characterized by peaceful competition rather than violence, but sectarianism and ethnic and factional infighting still remain. This report discusses issues relating to opponents of the Iraqi Prime Minister Nuri al-Maliki and also discusses the atmosphere of nationwide provincial elections. The report also addresses the Obama Administration's plan to reduce the U.S. troop presence in Iraq by August 2010 and briefly addresses the Iranian influence in Iraq.