The Bush administration would press the Iraqi government to adopt an oil trust fund for distributing revenue or risk economic assistance under a bill proposed by Sens. Hillary Clinton and John Ensign.

The New York Democrat and the Nevada Republican see their legislation as an end-around the Iraqi political debate over an oil law and a measure to rally Iraqis while ensuring oil transparency.

If approved, the State Department must give the Iraqi government an "oil trust plan" and certify it to six congressional committees within 90 days of enactment of the legislation.

If the department fails to do so, 10 percent of certain reconstruction aid in the Economic Support Fund to Iraq would be withheld immediately, and another 10 percent every 30 days until the certification is completed.

Though there are no details yet, a Clinton aide speaking on background said that Iraqis would receive a percentage of oil sales after the government allocates funds for reconstruction and other needs.