From the ASD Network:
The Government of Iraq has requested a possible sale of (80,000) M16A4 5.56MM Rifles, (25,000) M4 5.56MM Carbines, (2,550) M203 40MM Grenade Launchers, spare and repair parts, support equipment, publications and technical data, personnel training and training equipment, contractor engineering and technical support services, and other related elements of logistics support. The estimated cost is $148 million.
The M203 will start being replaced next year. It looks like they will end up in Iraqi service.