On August 19, 2020, the United States Agency for International Development (USAID), represented by Michael Harvey, Assistant Administrator for the Middle East, and the Ministry of Finance of the Republic of Iraq, represented by His Excellency Minister Ali Allawi, signed a Memorandum of Understanding (MOU). The signing of this MOU showcases the commitment of the Trump Administration and USAID to see Iraq rebuild, revitalize, and become increasingly self-reliant.

Highlighting the U.S. Government's long-term commitment to finance activities that strengthen Iraq's democracy, governance, and economic growth, the MOU affirms that USAID and the Iraqi Ministry of Finance will meet over the coming months to negotiate a possible bilateral development agreement. Similar to those in place with the governments of other countries in the Middle East, including the Arab Republic of Egypt and the Hashemite Kingdom of Jordan, such an agreement would ensure greater alignment between Iraqi and U.S. development priorities and provide the Iraqi Government closer involvement in the allocation of USAID's assistance.

Since 2014, USAID has invested more than $2.4 billion in humanitarian and development assistance to support the recovery of Iraqis targeted by the so-called Islamic State in Iraq and Syria (ISIS), including food, shelter, drinking water, and medical care. USAID also has funded programs to support economic recovery, rehabilitate critical infrastructure, promote justice and reconciliation, and assist the return of displaced ethnic and religious minorities, including by working directly with local civil-society organizations and private Iraqi firms. In addition, USAID is currently funding financial and economic advisors to help the Government of Iraq implement macroeconomic reforms.