The US House of Representatives has given final approval to $87.5-billion legislation to occupy and rebuild Iraq, handing President George W. Bush a major victory.
The House voted 298-121 shortly after midnight for the huge bill that offers Mr Bush money to support troops and undertake the country's massive rebuilding for up to a year amid mounting skepticism in the US Congress and among the public of a successful outcome.
The US Senate was expected to follow on Monday, sending Mr Bush the measure that backed his plan for a no-strings grant for Iraq's reconstruction instead of loans to be repaid from its future oil wealth.
The bill largely gave Mr Bush what he wanted, providing $65 billion for US troops in Iraq and Afghanistan.
But lawmakers trimmed his $20.3 billion plan for Iraq's rebuilding to $18.6 billion, set stricter demands for the administration to account for how the money was used, and tightened requirements for competitive bidding on contracts.
Mr Bush faced down the only serious challenge to his proposal, defeating a rebellion by a number of Republicans and almost all Democrats who said Iraq should repay half of the bill's nearly $20 billion to rebuild its infrastructure.
The White House had threatened to veto the entire bill if it contained loans, which it argued would undermine efforts to stabilize Iraq, prolong the US occupation, and burden Iraq with more debt
The bill comes after a $79 billion emergency package largely for Iraq and Afghanistan passed by Congress in April.