I just got this in my email from the Ban Uranium Weapons group at Yahoo:

In 31 July 2008, the US Defense Security Cooperation Agency notified Congress of a possible Foreign Military Sale to Iraq of M1A1 and Upgrade to M1A1M Abrams Tanks. The total
estimated value of this option is around US$ 2.16 billion. Iraq intends to aquire 140 M1A1 Abrams tanks, upgraded to the M1A1M configuration (the specification of this configuration is presently unknown), plus spare parts and vehicles to support the M1A1 Abrams tanks operationally,
etc.

Official news release here

The deal includes ammunition: is the US selling DU ammunition to the Iraqi army?

The deal is a small part of a multi-billion arms binge sponsored by the US Defence Security Cooperation Agency.

That is a good question. I have one more. If the U.S. can’t even seem to create an effective police force in Iraq, why are they already willing to sell the army tanks? Shouldn’t they be worried these tanks will fall into Iranian hands?