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.

Dave Huss, Getty Images

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.


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