An influential Washington think tank that monitors financial waste by the US government has sharply criticised the $25 million given to the International Fund for Ireland each year.
In its annual report, Citizens Against Government Waste (CAGW) said US taxpayers' money given to the International Fund for Ireland was being spent on wasteful projects such as the Jeanie Johnson replica Famine ship, and on Irish companies making golfing videos and exporting sweaters.
The annual "Pig Book" report on so-called political "pork projects" was launched this week by a Republican presidential candidate, Senator John McCain.
CAGW describes pork projects as funding organised by members of Congress for pet projects and uses a strict list of criteria to define them.
The report, which attracts large media attention from across the US, cited the International Fund for Ireland as the most expensive foreign operations pork project.
The fund was set up in 1986 to bolster the Anglo-Irish Agreement by funding economic and social projects on both sides of the Border.
The Bush administration is seeking to make a huge $16.5 million cut in the IFI's funding for next year, but is meeting strong opposition in Congress.
CAGW says that congressional financing for the IFI has not reflected the new political situation in Northern Ireland.
"Through war and peace, rain and shine, surplus and deficits, IFI receives funding, accumulating $421 million since 1986," the report says.
It also sharply questioned the job-creation potential of the projects funded by the IFI.
"This US contribution to the fund is to be spent on those projects that hold the greatest potential for job creation and equal opportunity for the Irish people.
"Such projects have included building a replica of the Jeanie Johnson . . . a national water sports centre used for coaching top-level athletes, golf videos and exporting sweaters," it adds.
The report, backed by Senator McCain, as well as two Republicans, Mr Jeff Flake of Arizona and Mr Pat Toomey of Pennsylvania, was strongly contested by a spokesman for the IFI, who described it as inaccurate and misleading.
He said that it was incorrect to say that the IFI's role was solely based on job creation.
The fund's remit from the start had been to promote both economic and social advance in Northern Ireland and Border counties, as well as "contact, dialogue and reconciliation" in Northern Ireland.
He also said that the IFI had not funded the Jeannie Johnson, but had funded a "Wider Horizons" programme, through which unemployed people had learned shipbuilding skills on the project.