GovernmentExecutive.com

President Bush signed the defense authorization bill into law Monday, a month after he caught Congress by surprise and rejected the measure over a provision that threatened to freeze Iraqi assets held in U.S. financial institutions.

In addition to authorizing funding for the Defense Department and military construction, the measure authorizes military pay increases of 3.5 percent and contains several policy initiatives intended to improve oversight of the Pentagon and its contractors.

"This is a great day for our troops, their families, and our nation," said House Armed Services Chairman Ike Skelton, D-Mo. "In spite of the delay caused by the president's unexpected veto, it is gratifying to see this defense bill finally signed into law. I am very proud of this legislation, which may be the best defense bill in decades."

Congress revised the legislation after Bush vetoed it Dec. 28 because of the Iraqi assets provision, which originated in the Senate version of the bill as an amendment by Sen. Frank Lautenberg, D-N.J. The goal was to expand the ability of American victims of terrorism to sue current and former state sponsors of terrorism for damages in U.S. courts. The language essentially would have held the current Iraqi government liable for suits filed by victims of former President Saddam Hussein's regime.

The White House argued that freezing Iraqi assets would devastate reconstruction efforts.

As approved by the House and Senate, the revised bill included a presidential waiver for all claims against Iraq that occurred before enactment of the fiscal 2008 defense authorization bill. The president must notify Congress within 30 days of issuing the waiver or it cannot go into effect.

House lawmakers also added non-binding "sense of the Congress" language urging the president to work with the Iraqi government to compensate Saddam's victims.

COMMENTS

• ...and once again the Guard gets "hosed" towards a more equitable retirement; the bill included a reduction from age 60 for each 90-days of service during recall to active duty(NOT retroactive to 911...but henceforth from this day forward). This is a "hollow" vicotry for all of us who have served in the Guard during these times, have served multiple tours of Iraq or Afghanistan and are nearly ready to retire.....but must wait till age 60 to receive our retirement. Meanwhile, Active duty(and now their families)get an even bigger piece of the pie. Paul Rieder Posted January 29, 2008 1:37 PM