Requires: (1) the Department of Defense Inspector General and the Special Inspector General for Iraq Reconstruction to report quarterly to Congress respecting the expenditures of military and reconstruction funds in Iraq, including efforts to obtain assistance from other countries and an assessment of future funding needs; (2) the Government Accountability Office (GAO) to conduct an audit if either Inspector General fails to submit such report; and (3) the imposition of sanctions against contractors who have engaged in profiteering or fraud.
States that: (1) Congress should create a Truman Committee to conduct an ongoing study and investigation of Operation Iraqi Freedom contracts; (2) funding requests for Operation Iraqi Freedom beginning with FY2008 must come through the regular appropriations process and not through emergency supplementals; and (3) the Administration should condition further American financial, military, and political resources upon improvement in Iraqi assumption of principal responsibility for internally policing Iraq.