FILE - In this Dec. 10, 2012 file photo, fog obscures the Capitol dome on Capitol Hill in Washington. Big tax increases will hit millions of families and businesses a lot sooner than many realize if Congress and the White House don't agree on a plan to avoid the year-end fiscal cliff of automatic tax increases and government spending cuts. In fact, they already have. More than 70 tax breaks enjoyed by individuals and businesses already expired at the beginning of this year. If Congress doesn't extend them, a typical middle class family could get a $4,000 tax hike when they file their 2012 returns next spring, according to a private analysis. At the same time, businesses could lose dozens of tax breaks they have enjoyed for years. (AP Photo/J. Scott Applewhite)
WASHINGTON (AP) -- House and Senate negotiators have reached agreement on a $633 billion defense bill that would tighten sanctions on Iran and give the Pentagon some leeway in developing alternative fuels.
Top members of the Armed Services committees announced the completion of the bill at a Capitol Hill news conference Tuesday. The House is expected to vote on the measure Thursday and the Senate later in the week before sending it to President Barack Obama.
The White House had threatened a veto, but Senate Armed Services Chairman Carl Levin said lawmakers addressed a number of administration concerns. He said he didn't see anything in the final bill that would warrant a veto.
The measure includes a 1.7 percent pay raise for military personnel.