To redeploy United States Armed Forces from Iraq and to establish a new direction for United States policy toward Iraq.

Summary: New Direction for Iraq Act of 2007 - Prohibits Department of Defense (DOD) funds from being obligated or expended to increase the number of U.S. Armed Forces serving in Iraq so that the total number serving in Iraq at any time exceeds the number serving in Iraq as of the date of the enactment of this Act unless the increase is specifically authorized by Congress.

Directs the Secretary of Defense to begin the redeployment of U.S. Armed Forces from Iraq within 30 days of enactment of this Act, which shall be completed in the shortest appropriate time frame. (Expresses the sense of Congress that the shortest appropriate time frame should be no longer than one year.)

Prohibits: (1) permanent or long-term U.S. military installations in Iraq; and (2) U.S. actions to control Iraqi oil reserves.

Provides for assistance to Iraq for: (1) reconstruction and economic development through Iraqi businesses and nationals; (2) promotion of democracy and civil society; and (3) disarmament, demobilization, and reintegration of militias.

Authorizes the President to terminate all contracts with a contractor having more than one federal Iraqi reconstruction contract for non-fulfillment of one such contract.

Expresses the sense of Congress that: (1) the Attorney General should seek to prosecute criminal fraud in the awarding and carrying out of federal contracts for Iraq reconstruction; and (2) the appropriate House and Senate committees should investigate the awarding and carrying out of specified Iraq-related contracts.

Directs the President, through the Secretary of State and the Secretary of Defense, to: (1) undertake a regional diplomatic effort to promote stability in Iraq; and (2) undertake a renewed effort towards securing Israeli-Palestinian peace on a basis similar to the parameters for peace presented to Israel and the Palestinian Authority by former President Bill Clinton in December 2000 and the unofficial Geneva Accords of 2003.

Directs the President, in partnership with the government of Iraq, to develop reconciliation, security, and governance benchmarks. Expresses the sense of Congress that further political and economic support for Iraq should be conditioned on significant progress towards achieving such benchmarks.

Directs the President to appoint a Special Envoy for Iraq Reconciliation.

Directs the President, for any country with a significant Iraqi refugee population, to: (1) seek to negotiate a bilateral refugee resettlement agreement for such refugees' U.S. admission; or (2) devise strategies, in consultation with the host government and international organizations and agencies, for provision of assistance to facilitate such refugees' host country integration.

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``New Direction for 
Iraq Act of 2007''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title and table of contents.
Sec. 2. Goals of United States policy toward Iraq.
     TITLE I--REDEPLOYMENT OF UNITED STATES ARMED FORCES FROM IRAQ

Sec. 101. Prohibition on escalation of United States military presence 
                            in Iraq.
Sec. 102. Redeployment of United States Armed Forces from Iraq.
Sec. 103. Restoration of Iraqi sovereignty.
                     TITLE II--ASSISTANCE FOR IRAQ

Sec. 201. Assistance for reconstruction and economic development.
Sec. 202. Assistance for democracy and civil society promotion.
Sec. 203. Assistance for militia disarmament, demobilization, and 
                            reintegration.
Sec. 204. Federal contracts for Iraq reconstruction.
                     TITLE III--DIPLOMATIC EFFORTS

Sec. 301. Regional and international diplomacy.
Sec. 302. Internal Iraq diplomacy.
Sec. 303. Refugees from Iraq.

SEC. 2. GOALS OF UNITED STATES POLICY TOWARD IRAQ.

    The goals of United States policy toward Iraq are--
            (1) to support the people of Iraq in their desire for 
        security, democratic self-determination, and an end to the 
        United States occupation of Iraq;
            (2) to mitigate against a worsening of violence in Iraq and 
        seek to prevent, to the extent possible, additional sectarian 
        violence;
            (3) to reestablish United States international credibility, 
        military readiness, and fiscal responsibility; and
            (4) to refocus on the threat posed by violent 
        fundamentalists and other real threats to the national security 
        of the United States.

     TITLE I--REDEPLOYMENT OF UNITED STATES ARMED FORCES FROM IRAQ

SEC. 101. PROHIBITION ON ESCALATION OF UNITED STATES MILITARY PRESENCE 
              IN IRAQ.

    Funds appropriated or otherwise made available to the Department of 
Defense under any provision of law may not be obligated or expended to 
increase the number of members of the Armed Forces serving in Iraq so 
that the total number of members serving in Iraq at any time exceeds 
the number of members serving in Iraq as of the date of the enactment 
of this Act unless the increase is specifically authorized by an Act of 
Congress.

SEC. 102. REDEPLOYMENT OF UNITED STATES ARMED FORCES FROM IRAQ.

    (a) Commencement of Redeployment.--Not later than 30 days after the 
date of the enactment of this Act, the Secretary of Defense shall begin 
the redeployment of United States Armed Forces from Iraq.
    (b) Timetable for Completion of Redeployment.--The redeployment 
required by subsection (a) shall be completed in the shortest 
appropriate time frame, based on the advice of the Joint Chiefs of 
Staff and detailed plan for the transfer of security responsibility on 
a sector-by-sector basis to be negotiated with the appropriate 
authorities of the Government of Iraq. It is the sense of Congress that 
the phrase ``shortest appropriate time frame'' should be no longer than 
one year.
    (c) Redeployment Locations.--The majority of units of the Armed 
Forces redeployed pursuant to subsection (a) should be returned to the 
United States. Other units should be redeployed as part of a rapid 
reaction force in the Middle East, with the capacity to respond to 
contingencies in Iraq and in Afghanistan for the purpose of expanding 
secured areas and preventing the reemergence of the Taliban.
    (d) Mission of Armed Forces in Iraq.--Until the redeployment 
required by subsection (a) is completed, the mission of the Armed 
Forces in Iraq should focus on supporting the Iraqi Army in holding and 
stabilizing population centers, rather than using the Armed Forces to 
engage in combat operations against insurgents.

SEC. 103. RESTORATION OF IRAQI SOVEREIGNTY.

    (a) Prohibition on Permanent United States Military Installations 
in Iraq.--No permanent or long-term military installation, which is 
designed or intended to be occupied by a unit of the United States 
Armed Forces after the redeployment of the Armed Forces from Iraq 
pursuant to section 102, may be constructed in Iraq.
    (b) Prohibition on United States Actions to Control Oil Resources 
in Iraq.--No official or representative of the Government of the United 
States shall seek to exercise control over the petroleum 
infrastructure, petroleum resources, or the economic policies of Iraq.

                     TITLE II--ASSISTANCE FOR IRAQ

SEC. 201. ASSISTANCE FOR RECONSTRUCTION AND ECONOMIC DEVELOPMENT.

    (a) Requirement to Provide Assistance Through Iraqi Businesses and 
Nationals.--Funds appropriated or otherwise made available for the 
reconstruction of Iraq or economic development in Iraq under any 
provision of law shall, to the maximum extent possible and appropriate, 
be expended through--
            (1) Iraqi-owned businesses, with a preference for small 
        businesses; and
            (2) private voluntary organizations or businesses of any 
        nationality whose Iraq-based staff consists primarily of 
        individuals who are nationals of Iraq.
    (b) Sense of Congress Regarding Iraq Community Action Program.--It 
is the sense of Congress that the Iraq Community Action Program of the 
United States Agency for International Development is an effective 
economic development program being carried out at the local level in 
Iraq and should be greatly expanded.

SEC. 202. ASSISTANCE FOR DEMOCRACY AND CIVIL SOCIETY PROMOTION.

    (a) Assistance.--The President is authorized to provide assistance 
for the promotion of democracy and civil society in Iraq.
    (b) Activities Supported.--Assistance provided under subsection (a) 
shall, to the maximum extent practicable, be used to strengthen 
participatory, nonpartisan, multi-ethnic institutions of civil society 
in Iraq, including labor and trade unions, chambers of commerce, 
environmental organizations, peacebuilding and reconciliation programs, 
and social and community organizations.
    (c) Authorization of Appropriations.--
            (1) In general.--To carry out this section, there are 
        authorized to be appropriated to the President $40,000,000 for 
        each of the fiscal years 2007 through 2010.
            (2) Additional requirements.--Amounts appropriated pursuant 
        to the authorization of appropriations under paragraph (1)--
                    (A) are authorized to remain available until 
                expended; and
                    (B) are in addition to amounts otherwise available 
                for such purposes.

SEC. 203. ASSISTANCE FOR MILITIA DISARMAMENT, DEMOBILIZATION, AND 
              REINTEGRATION.

    (a) Assistance.--The President is authorized to provide assistance 
for the disarmament, demobilization, and reintegration of militias in 
Iraq.
    (b) Activities Supported.--Assistance provided under subsection (a) 
shall, to the maximum extent practicable, be used to support--
            (1) the presence of neutral international experts as 
        advisors to the Government of Iraq on the processes of 
        disarmament, demobilization, and reintegration of militias; and
            (2) the establishment of a single office in the Government 
        of Iraq to coordinate assistance for disarmament, 
        demobilization, and reintegration of militias.
    (c) Sense of Congress.--It is the sense of Congress that members 
and units of the United States Armed Forces should not carry out or 
otherwise participate in activities supported under this section.
    (d) Authorization of Appropriations.--
            (1) In general.--To carry out this section, there are 
        authorized to be appropriated to the President such sums as may 
        be necessary for each of the fiscal years 2007 through 2010.
            (2) Additional requirements.--Amounts appropriated pursuant 
        to the authorization of appropriations under paragraph (1)--
                    (A) are authorized to remain available until 
                expended; and
                    (B) are in addition to amounts otherwise available 
                for such purposes.

SEC. 204. FEDERAL CONTRACTS FOR IRAQ RECONSTRUCTION.

    (a) Termination of All Contracts of Contractor Not Fulfilling Terms 
of One Contract.--In the case of a contractor with more than one 
contract awarded by the Federal Government to perform Iraq 
reconstruction, the President may terminate all such contracts of the 
contractor if the contractor is not fulfilling the terms of one of its 
contracts for Iraq reconstruction. Any funds recovered from the 
termination of such contracts shall be considered to be funds available 
for the reconstruction of Iraq or economic development in Iraq and 
shall, to the maximum extent possible and appropriate, be expended in 
accordance with section 201(a).
    (b) Recovery of Funds.--It is the sense of Congress that the 
President should make aggressive use of the authority to recover funds 
from any contracts for Iraq reconstruction that are terminated, whether 
terminated pursuant to the authority in subsection (a) or as otherwise 
provided by law.
    (c) War Profiteering.--It is the sense of Congress that the 
Attorney General, in consultation with the Secretaries of Defense and 
State, should aggressively seek to prosecute any perpetrators of 
criminal fraud in the awarding and carrying out of Federal contracts 
for Iraq reconstruction.
    (d) Congressional Oversight.--It is the sense of Congress that the 
appropriate committees of jurisdiction in the House of Representatives 
and the Senate should use their full authority to investigate the 
awarding and carrying out of contracts by the Government to conduct 
activities in Iraq regarding the following matters:
            (1) The award of such contracts, including the solicitation 
        and evaluation of bids or proposals.
            (2) Standards for the auditing of such contracts.
            (3) Procedures for oversight of the performance of such 
        contracts.
            (4) Forms of payment and safeguards against money 
        laundering.
            (5) Accountability of contractors and Government officials 
        involved in the award and carrying out of such contracts.
            (6) Penalties for violations of law and abuses in the 
        awarding and carrying out of such contracts.
            (7) The use of subcontracts under large, comprehensive 
        contracts.
            (8) The inclusion and use of small businesses in such 
        contracts, through subcontracts or otherwise.

                     TITLE III--DIPLOMATIC EFFORTS

SEC. 301. REGIONAL AND INTERNATIONAL DIPLOMACY.

    (a) In General.--The President, acting through the Secretary of 
State and the Secretary of Defense, shall undertake a regional 
diplomatic effort to establish a regional security dialogue to provide 
support and cooperation in promoting stability in Iraq. Such an effort 
shall include direct bilateral negotiations with all of Iraq's 
neighboring countries and other relevant regional and nonregional 
governments and international organizations, such as the United 
Nations, the North Atlantic Treaty Organization, the Arab League, and 
the Organization of the Islamic Conference.
    (b) Diplomatic Options.--If appropriate, the President, acting 
through the Secretary of State and the Secretary of Defense, shall seek 
to formalize the regional security dialogue required under subsection 
(a) in a multilateral support group framework and host a regional 
security conference.
    (c) Sense of Congress Regarding Policy.--It is the sense of 
Congress that the negotiations and security dialogue required under 
subsection (a) should not undermine United States policy in support of 
the security of Israel, the sovereignty of Lebanon, or the autonomy of 
Iraqi Kurds.
    (d) Comprehensive Agreements.--The President, acting through the 
Secretary of State and the Secretary of Defense, shall seek to use the 
negotiations required under subsection (a) to reach comprehensive 
agreements with Syria and Iran regarding ending support for terrorism, 
nuclear nonproliferation, cessation of violence against Israel, and 
other outstanding issues. The President, acting through the Secretary 
of State and the Secretary of Defense shall further demonstrate a 
willingness to provide the necessary security guarantees and economic 
and diplomatic incentives for such agreements.
    (e) Israeli-Palestinian Peace.--
            (1) Sense of congress.--It is the sense of Congress that 
        United States support for progress in the Israeli-Palestinian 
        peace process is an important factor for the United States to 
        regain credibility and influence in the Middle East.
            (2) United states effort.--The President, acting through 
        the Secretary of State and the Secretary of Defense, shall 
        undertake a renewed effort towards securing Israeli-Palestinian 
        peace by encouraging negotiations aimed at the establishment of 
        an independent and contiguous Palestinian state living 
        alongside a secure Israel in peace, on a basis similar to the 
        parameters for peace presented to Israel and the Palestinian 
        Authority by former President Bill Clinton in December 2000 and 
        the unofficial Geneva Accords of 2003.
    (f) United Nations.--The President shall direct the Permanent 
Representative of the United States to the United Nations to seek a new 
resolution in the United Nations Security Council supporting regional 
and international cooperation in promoting stability in Iraq and 
authorizing renewed United Nations assistance to promote security and 
political reconciliation in Iraq.

SEC. 302. INTERNAL IRAQ DIPLOMACY.

    (a) Benchmarks.--The President, in partnership with the Government 
of Iraq, shall develop a series of benchmarks in the areas of national 
reconciliation, security, and governance.
    (b) Sense of Congress Regarding Support for the Government of 
Iraq.--It is the sense of Congress that further political and economic 
support for the Government of Iraq should be conditioned on significant 
progress towards achieving the benchmarks referred to in subsection 
(a).
    (c) Special Envoy.--
            (1) Appointment.--Not later than 15 days after the date 
        determined in subsection (d), the President shall appoint an 
        individual to serve as Special Envoy for Iraq Reconciliation.
            (2) Criteria for appointment.--An individual appointed 
        under paragraph (1) shall be of significant stature and shall 
        have the respect and trust of parties within Iraq.
            (3) Duties.--The Special Envoy shall--
                    (A) encourage dialogue between sectarian 
                communities within Iraq with the goal of promoting 
                peace and national reconciliation;
                    (B) engage all political and military entities, 
                including all militias and insurgents (except militias 
                and insurgents associated or affiliated in any way or 
                manner with al-Qaeda) within Iraq in a peace process; 
                and
                    (C) encourage religious and tribal leaders to speak 
                out in favor of peace and reconciliation.
    (d) Role of the United Nations.--The requirement for the President 
to appoint a Special Envoy in accordance with subsection (c) shall be 
satisfied by the appointment by the United Nations of such a special 
envoy based on the same criteria and with the same duties as described 
in such subsection, provided such United Nations appointment occurs not 
later than 30 days after the date of the enactment of this Act.

SEC. 303. REFUGEES FROM IRAQ.

    (a) Sense of Congress.--It is the sense of Congress that--
            (1) the humanitarian impact of the war in Iraq, 
        particularly the problem of refugees from Iraq, needs greater 
        attention from the United States Government;
            (2) the United States should greatly increase the number of 
        refugees from Iraq who are admitted to the United States and 
        increase the amount of assistance provided to support Iraqi 
        refugees elsewhere;
            (3) the Secretary of Homeland Security and Secretary of 
        State, as appropriate, should seek to streamline procedures for 
        the admission to the United States of refugees from Iraq and 
        ease the burden of applying for refugee status;
            (4) the 20,000 unallocated refugee admissions authorized by 
        Presidential Determination No. 2007-1 should be used for 
        refugees from Iraq; and
            (5) special attention should be given to particularly 
        vulnerable Iraqi refugee populations, including Iraqis who 
        worked with United States Armed Forces, ethnically mixed 
        families, and members of religious minority groups.
    (b) Action.--The President, acting through the Secretary of 
Homeland Security and the Secretary of State, as appropriate, shall, 
for any country containing a significant population of Iraqi refugees--
            (1) if, appropriate, seek to negotiate a bilateral refugee 
        resettlement agreement for the purpose of expediting the 
        admission into the United States of such refugees; or
            (2) if the bilateral refugee resettlement agreement 
        referred to in paragraph (1) is not achievable, devise 
        strategies, in consultation with the host government and 
        relevant international organizations and agencies, for the 
        provision of assistance to facilitate the well-being, safety, 
        and integration into their host environments of such refugees.
    (c) Sense of Congress Regarding Funding.--It is the sense of 
Congress that the President should submit to Congress a supplemental 
appropriations request to provide sufficient funding to carry out 
subsection (b).