Since 2003, USAID has been a major contributor to the U.S. government's efforts in Iraq. U. S. assistance to Iraq has changed substantially over the last few years and will evolve in the years to come. From 2003 to 2006, USAID focused on restoring essential services such as health, education, water and electricity; improving economic opportunities; building the foundation of democratic institutions and governance; and managing conflict.

In 2007, the focus shifted to strengthening the effectiveness of government and civil society, expanding private-sector opportunities, supporting stabilization activities and providing humanitarian assistance for internally displaced persons. These types of activities continued until 2009 when U.S. assistance again shifted from reconstruction to building Iraq's ability to reconstruct and govern itself effectively.

Currently, USAID continues to support the objectives of the Strategic Framework Agreement with the Government of Iraq.  The advent of the Islamic State of Iraq and the Levant (Da’esh) and the crisis caused by a major decline in government revenues due to low oil prices have reshaped USAID's work in Iraq.  USAID now focuses on humanitarian assistance to those displaced by armed conflict, economic reform to restore Iraq’s long-term fiscal health, governance reform to improve the quality of services the Government of Iraq provides to its citizens, and facilitating the return of populations displaced due to Da'esh.  

In concert with other U.S. government agencies, USAID works closely with the Government of Iraq, local governments, international institutions such as the United Nations and World Bank, and a network of local partners.  USAID's primary long-term goal in support of U.S. foreign policy objectives remains a secure and stable Iraq, with more inclusive, capable and accountable governance.