The measure includes a 1.7 percent pay raise for military personnel.
The legislated sanctions would hit Iran's energy, shipping and shipbuilding sectors as well as Iran's ports, blacklisting them as "entities of proliferation concern." The bill would impose penalties on anyone caught supplying precious metals to Iran, and sanctions on Iranian broadcasting.
The bill eliminated a House provision barring the military from buying alternative fuels if the cost exceeds traditional fossil fuels, a measure that had drawn a veto threat. Instead, negotiators said the Pentagon could do so as long as the Energy and Agriculture departments make their financial contributions to the work.
The bill also watered down a House effort to require construction of an East Coast missile defense site, instead pressing the Pentagon to study three possible locations.
Months after the attack on the U.S. Consulate in Benghazi, Libya, that killed Ambassador Chris Stevens and three other Americans, the bill would provide an additional 1,000 Marines for embassy security.
Reacting to relentless violence in Syria, the bill would require the Pentagon to report to Congress on possible military options.
The bill would authorize nearly $480 million for U.S.-Israeli missile defense, including $211 million for Iron Dome, the system designed to intercept short-range rockets and mortars fired by Palestinian militants from Gaza at southern Israel.
The agreement retained a Senate provision that stops the Pentagon from sending additional spies overseas until Congress has answers about the cost and how the spies would be used.
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