Under the Lead Inspector General framework, the Inspectors General for the Department of Defense, Department of State, and the U.S. Agency for International Development conduct oversight of and report on the overseas contingency operation "Operation Inherent Resolve" (OIR). The mission of OIR is to advise, assist, and enable partner forces until they can independently defeat ISIS in designated areas of Iraq and Syria, in order to set conditions for long-term security cooperation frameworks. The broader counter-ISIS campaign includes supporting the Iraqi government and local Syrian partners with civilian-led stabilization activities. This report also discusses the planned, ongoing, and completed oversight work conducted by the Lead IG agencies and our partner oversight agencies during the quarter.
On July 1, State assumed management of 15 remaining humanitarian assistance programs from USAID. Five former USAID-funded partners continued to provide lifesaving activities in al-Hol, ranging from providing daily bread to basic health services and support to trauma-affected children, during the reporting period. However, 14 of the 15 USAID awards transferred, valued at $102.6 million, were scheduled to end on December 31, State reported.
Prior to the July 2025 transfer of many USAID programs to State and the termination of others, USAID staff then employed by the agency identified a number of challenges and risks affecting programs in Iraq and Syria. The risks included potential gaps in the management of USAID awards during contract transfers. There was also a risk of fraud, waste, or mismanagement during the rapid closeout and disposition of equipment and commodities. The termination of third-party monitoring contracts in both Syria and Iraq has further limited oversight of humanitarian programs, USAID said.
As a result of the Foreign Assistance Review, 21 USAID programs in Iraq were cancelled. On July 1, five active USAID foreign assistance programs, totaling $27 million, were transferred to State. Four of these programs ended on December 31. In addition to the five programs transferred from USAID, State had 18 active stabilization programs in Iraq and 4 humanitarian assistance awards as of December 31. The U.S. Embassy in Baghdad onboarded three new assistance specialists, who coordinate assistance efforts at Mission Iraq and manage the five legacy USAID programs in Iraq. Third party monitors began field work for some awards transferred from USAID to State in December.
In our previous report, USAID staff identified challenges and risks with U.S. assistance programs in Ukraine. During the reporting period, USAID OIG followed up on the previously reported risks and challenges; however, staffing cuts at USAID and the ongoing operational drawdown at the agency limited the amount of information that USAID OIG could collect on USAID activities.
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