In January 2004, with $18.4 billion in hand for reconstruction package, the United States had allotted $3.2 billion of this to build up Iraq's army and security forces. But in the months to come, more money was diverted from other sectors such as:
Electricity – “More than $1 billion earmarked for electricity to build a police force and army capable of combating foreign and domestic guerrillas”
The national electrical grid has an average daily output of 4,000 megawatts, about 400 megawatts less than its prewar level.
Roads, bridges and schools – “The United States will spend $437 million on border fortresses and guards, about $100 million more than the amount dedicated to roads, bridges and public buildings, including schools.”
Education – “Education programs have been allocated $99 million; the United States is spending $107 million to build a secure communications network for security forces.”
Additionally, “hundreds of millions of dollars were shifted to fund elections and to take Iraq through four changes of government. Funds were also reallocated to provide a $767 million increase in spending on Iraq's justice system. The money has gone toward building or renovating 10 medium- and maximum-security prisons -- early plans called for four prisons -- and for detention centers nationwide.”
[Contains excerpts of an article by Ellen Knickmeyer, Washington Post]