The House voted 329-101 on Thursday to pass a large annual defense policy bill that will increase America's entire national security budget for the fiscal year 2023 to $850.3 billion—tens of billions more than President Biden sought.

House lawmakers justified adding $37 billion to Biden's $813 billion budget by citing high inflation, the war in Ukraine, and "Chinese threats". Last year, Congress approved a total national security budget of $778 billion.

“This year, it has been particularly challenging, given the rate of inflation,” said Rep. Adam Smith of Washington state, the Democratic chairman of the House Armed Services Committee. Smith stated that the law would assist military men and their families in dealing with rising housing and other necessities prices.

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The bipartisan National Defense Authorization Act would increase troop pay by 4.6% and provide a 2.4% "inflation bonus" for military and civilian staff earning less than $45,000 per year. In June, consumer inflation reached a four-decade high of 9.1%.

The plan would also provide $750 million in assistance for base commissaries to help military families cut the cost of groceries and other necessities and $500 million for housing allowances to offset rising rents and codify a $15 minimum wage for workers on federal service and construction contracts.

$858.5 billion NDAA

The Senate is anticipated to enact its version of the NDAA, worth $858.5 billion, in the coming weeks. The bills from both chambers will then be reconciled behind closed doors before being sent to the President's desk for signature.

In a statement issued earlier this week, the Biden administration stated that the inflation incentive would "create significant pay inequities among Federal civilian employees" and cause additional problems with pay changes in 2024, as written.

With the whole world actively participating in the arms race, find out the top 10 largest defense budgets. pic.twitter.com/7jLbdtCxuU

— Al Mayadeen English (@MayadeenEnglish) December 19, 2021

The Biden administration's budget would have cut funds for the development of a new nuclear-armed cruise missile capable of being launched from ships or submarines. The House NDAA, on the other hand, approves $45 million in financing for the missile's research and development while demanding further studies before the weapon can go to system development and demonstration, or development engineering.

The bill would keep five of the Navy's nine littoral combat ships—high-tech, fast-moving ships with lean crews meant to pursue pirates, detect mines, and patrol coastal waters—from being retired early due to concerns about their performance and capabilities.

$1 billion to Ukraine

Other elements in the House plan include allocating $1 billion for security support to Ukrainian armed forces, which is $700 million more than Biden's budget request, and giving the mayor of the District of Columbia jurisdiction over the D.C. National Guard on par with state governors. The President now oversees the D.C. National Guard.

The bill would also prohibit the President from selling or exporting new F-16s to Turkey unless Biden certifies to Congress that such transfers are in America's national interest, and it would repeal the 2002 and 1991 authorizations for military force in Iraq, as well as a lesser-known 1957 authorization passed during the Cold War to counter "the possibility of Communist aggression" in the Middle East.

Read next: US House approves defense bill authorizing $100Mln for Ukraine

One amendment added to the bill by voice vote on the House floor on Wednesday would require the establishment of a secure government reporting system to encourage current and former military personnel, contractors, and civilian government employees to share information about "unidentified aerial phenomena" also known as unidentified flying objects, or UFOs, even if they had previously been constrained by orders or nondisclosure agreements.

The measure forbids retaliation against federal employees or contractors who report UFOs through the system and requires Congress to receive regular reports. The House convened the first congressional hearing on UFOs in 50 years earlier this year.

Pentagon vs. domestic programs 

Some Democrats argued that the federal government should spend less on the Pentagon and more on domestic programs to reduce the size of the defense budget.

Rep. Barbara Lee (D-CA) submitted an amendment that would have decreased the national security budget to the amount recommended by Biden, eliminating the $37 billion increase contributed by other lawmakers.

“Enough is enough. Americans are demanding that Congress rebalance our priorities and invest in the biggest challenges which we face,” she said. "While I personally support much larger cuts, we need to draw the line somewhere.”

Lee believes that the $37 billion would be better spent extending the child and earned-income tax credits, improving healthcare, and funding hearing aid for the elderly. Lee’s amendment failed, with 151 in favor and 277 opposed.