SECTION 1. FINDINGS.

    Congress finds the following:
            (1) The insurgency in Iraq has been fueled by the United 
        States occupation and the prospect of a long-term presence as 
        indicated by the building of permanent United States military 
        bases.
            (2) A United States declaration of an intention to withdraw 
        United States troops and close military bases will help dampen 
        the insurgency which has been inspired to resist colonization 
        and fight aggressors and those who have supported United States 
        policy.
            (3) A United States declaration of an intention to withdraw 
        United States troops and close military bases will provide an 
        opening in which parties within Iraq and in the region can set 
        the stage for negotiations toward a peaceful settlement in 
        Iraq.
            (4) The cost of withdrawing United States troops from Iraq 
        could be as low as $10 billion according to the Congressional 
        Budget Office.
            (5) A United States shift in policy away from unilateralism 
        and toward cooperation will provide new opportunities for 
        exploring common concerns about the situation in Iraq.
            (6) The United Nations is best equipped to build a 
        political consensus in Iraq through the crafting of a political 
        agreement.
            (7) The end of the occupation of Iraq creates a political 
        environment that enables the world community to assist the 
        United States in an orderly transition.
            (8) The United Nations is the only international 
        organization with the ability to mobilize and the legitimacy to 
        authorize peacekeeping troops.
            (9) The United Nations can implement the basis of an 
        agreement that will end the occupation of Iraq and begin the 
        transition to international peacekeepers.
            (10) The United Nations can field an international security 
        and peacekeeping mission, but such a mission cannot take shape 
        unless there is a peace to keep, and that will be dependent 
        upon a political process which reaches agreement between all 
        the Iraqi parties.
            (11) Reconstruction activities must be reorganized and 
        closely monitored in Iraq by the Iraqi Government, with the 
        assistance of the international community.
            (12) Any attempt to sell Iraqi oil assets during the United 
        States occupation will be a significant stumbling block to 
        peaceful resolution.
            (13) There must be fairness in the distribution of oil 
        resources in Iraq.
            (14) A reconciliation process that brings people together 
        is the only way to overcome their fears and reconcile their 
        differences.
            (15) It is essential to create a minimum of understanding 
        and mutual confidence between the Shiites, Sunnis, and Kurds.
            (16) The process of reconciliation must begin with a 
        national conference, organized with the assistance of the 
        United Nations and with the participation of parties that can 
        create, participate in, and affect the process of 
        reconciliation, defined as an airing of all grievances and the 
        creation of pathways toward open, transparent talks producing 
        truth and resolution of grievances.
            (17) The only sure path toward reconciliation is through 
        the political process.
            (18) All factions and all insurgents not associated with 
        al-Qaeda must be brought together in a relentless process which 
        involves Saudis, Turks, Syrians, and Iranians.
            (19) Achieving peace requires a process of international 
        truth and reconciliation between the people of the United 
        States and the people of Iraq.
            (20) A reparations program to assist Iraqis is essential to 
        enable reconciliation.

SEC. 2. STATEMENT OF POLICY.

    It is the policy of the United States that--
            (1) the United States should end the occupation of Iraq 
        immediately, simultaneously with the introduction of a United 
        Nations-led international peacekeeping force pursuant to an 
        agreement with nations within the region and which incorporates 
        the terms and conditions specified in section 1;
            (2) the Department of Defense should use readily available 
        existing funds to bring all United States troops and necessary 
        equipment home while a political settlement is being negotiated 
        and preparations are made for a transition to an international 
        security and peacekeeping force;
            (3) the Department of Defense should order a simultaneous 
        return of all United States contractors and subcontractors and 
        turn over all contracting work to the Iraqi Government;
            (4) the United Nations should be encouraged to prepare an 
        international security and peacekeeping force to be deployed to 
        Iraq, replacing United States troops who then return home;
            (5) the United States should provide funding for a United 
        Nations peacekeeping mission, in which 50 percent of the 
        peacekeeping troops should come from nations with large Muslim 
        populations;
            (6) the international security force, under United Nations 
        direction, should remain in place until the Iraqi Government is 
        capable of handling its own security;
            (7) the Iraqi Government, with assistance from the United 
        Nations, should immediately restart the failed reconstruction 
        program in Iraq and rebuild roads, bridges, schools, hospitals, 
        and other public facilities, houses, and factories with jobs 
        and job training going to local Iraqis;
            (8) the Iraqi Government, in an act of political 
        sovereignty, should set aside initiatives to privatize Iraqi 
        oil interests or other national assets and abandon all efforts, 
        whether at the behest of the United States or otherwise, to 
        change Iraqi national law to facilitate privatization;
            (9) the Iraq Government, in an act of political 
        sovereignty, should set forth a plan to stabilize Iraq's cost 
        for food and energy, on par to what the prices were before the 
        United States invasion and occupation;
            (10) the Iraqi Government, in an act of political 
        sovereignty, should strive for economic sovereignty for Iraq by 
        working with the world community to restore Iraq's fiscal 
        integrity without structural readjustment measures of the 
        International Monetary Funds or the World Bank;
            (11) the United States should initiate a reparations 
        program for the loss of Iraqi lives, physical and emotional 
        injuries, and damage to property, which should include an 
        effort to rescue the tens of thousands of Iraqi orphans from 
        lives of destitution; and
            (12) the United States should refrain from any covert 
        operations in Iraq and any attempts to destabilize the Iraqi 
        Government.

SEC. 3. DISENGAGEMENT OF UNITED STATES ARMED FORCES FROM IRAQ.

    (a) Withdrawal of Armed Forces.--Not later than the end of the 3-
month period beginning on the date of the enactment of this Act, all 
United States Armed Forces serving in Iraq shall be completely 
withdrawn from Iraq and returned to the United States or redeployed 
outside of the Middle East.
    (b) Prohibition on Use of Funds To Continue Deployment of Armed 
Forces in Iraq.--
            (1) Prohibition.--Funds appropriated or otherwise made 
        available under any provision of law may not be obligated or 
        expended to deploy or continue to deploy members or units of 
        the United States Armed Forces to Iraq as part of Operation 
        Iraqi Freedom.
            (2) Exceptions.--Paragraph (1) does not apply to the use of 
        funds--
                    (A) to provide for the safe and orderly withdrawal 
                of the Armed Forces from Iraq pursuant to subsection 
                (a);
                    (B) to ensure the security of Iraq by carrying out 
                consultations with the Government of Iraq, other 
                foreign governments, the United Nations, and other 
                international organizations; or
                    (C) to ensure the security of Iraq by funding the 
                United Nations-led peacekeeping mission.
    (c) Armed Forces Defined.--In this section, the term ``Armed 
Forces'' has the meaning given the term in section 101(a)(4) of title 
10, United States Code.
Output: Requires that all U.S. Armed Forces be completely withdrawn from Iraq and returned to the United States or redeployed outside of the Middle East within three months of enactment of this Act.

Prohibits fund use under any provision of law to deploy or continue to deploy members or units of the U.S. Armed Forces to Iraq as part of Operation Iraqi Freedom. Exempts from such prohibition fund use to: (1) provide for the Armed Forces' safe and orderly withdrawal from Iraq; (2) ensure the security of Iraq by carrying out consultations with the government of Iraq, other foreign governments, the United Nations, and other international organizations; or (3) ensure the security of Iraq by funding the U.N.-led peacekeeping mission.