Bush to veto U.S. defense bill after Iraq objects

Sen. Frank Lautenberg, a New Jersey Democrat who sponsored the provision, said it was aimed at allowing American victims of terrorism to take countries responsible to court, such as Iran for the 1983 bombing of the Marine barracks in Beirut.

Bush's veto, expected by Dec. 31, would not interrupt funding for the Pentagon and Iraq war since separate legislation provides more than $500 billion for the year.

The White House was consulting congressional leadership over the need to modify the bill, Stanzel said.

The broad defense policy bill also authorizes a pay raise for U.S. troops, expands the size of the Army and sets conditions on the Bush administration's plan to build a missile defense system in Europe.

The bill lays out a road map of military priorities, and directs weapons acquisition programs.