BAGHDAD—US troops found three bodies and their severed heads north of Baghdad on Wednesday while 13 people died in clashes in Ramadi, two more in a car bomb attack and two Iraqis employed by the US Army were shot in the north.

More than 350 people have been killed so far this month, spurring US authorities to transfer more than $3 billion into boosting security at the expense of earmarked reconstruction projects.

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