After speaking with U.N. experts in Iraq, and through their own talks with regular Iraqis, the group said they learned of the severe drain being felt in the medical, economic and intellectual sectors of Iraqi society.
"The oil-for-food programme funds are barely enough for Iraqis' urgent and immediate physical needs, with nothing made available for intellectual needs," the report said.
"The result is complete intellectual deprivation."
One result of the isolation is seen in the younger political class in Iraq, which is emerging as even more extreme force than the current leadership class led by President Saddam Hussein and his Ba'ath Party, they said.
"It is from these younger Ba'ath figures that pressure on Saddam Hussein is emerging from the right, challenging his 'too accommodating' stance toward the U.N. and the West," it said.
A U.N. programme permitting Iraq to sell oil for food has been in place since 1996, but has been criticised, especially in recent months, as unworkable and inadequate to provide Iraqi civilians with an acceptable quality of life.
The five staffers from offices of Democrat and independent House members, said their August 1999 trip was the first such congressional visit since shortly after the Gulf War in 1991.
On the humanitarian front, the group was shocked at the deprivation they saw in the hospitals and medical centres.
"Ceiling tiles were falling down. The hospital we visited didn't have incubators or air conditioners ... in part due to sanctions," said delegation member Danielle LeClair.
The United States and Britain have been criticised for putting "holds" on contracts for supplies and equipment purchased under the oil-for-food deal.
As of Jan. 31, contracts worth $1.5 billion had been frozen, with more than $1 billion of that frozen by the United States, the U.N. said this week in a new report.
On Monday U.N. Secretary General Kofi Annan recommended the Security Council double funds for Iraq's oil equipment and for an increase in health supplies, criticising Baghdad's priorities and the frozen contract practice.
The U.S. delegation went to Iraq to study the humanitarian situation, the impact sanctions have had on the two nations' trade, and depleted uranium-related health problems resulting from Allied bombings during the Gulf War.
Members were from the offices of Democratic Reps. Danny Davis of Illinois, Sam Gejdenson of Connecticut, Earl Hilliard of Alabama and Cynthia McKinney of Georgia, as well as from that of independent Bernie Sanders of Vermont.