The White Houses says it supports the legislation
The US House of Representatives has approved more funding to pay for another year of fighting in Iraq and in Afghanistan.
In a 268-155 vote, the Democrat-held House agreed to provide the Pentagon with $162bn (£82bn).
But the bill did not include any timetables for withdrawing US troops from Iraq. President George W Bush opposes such deadlines.
The bill is now expected to be debated in the Senate in the coming days.
In a statement, the White House said it supported the measure.
The bill allows the Pentagon to pay for US military operations in Iraq and Afghanistan until mid-2009.
It also envisages a significant increase in college education benefits for returning soldiers and help for US unemployed and flood victims in the Midwest.
If approved by the Senate, it will bring to more than $650bn (£330bn) the amount provided by Congress for the war in Iraq since the US-led invasion in 2003.
Some Democrats criticised the bill for not setting deadlines for pulling out US troops from Iraq.
"Let us hope this is the last time another dollar will be spent without constraint, without conditions," Democratic House Speaker Nancy Pelosi said.
Welcoming the result of the vote, House Republican Minority leader John Boehner said: "I'm glad we're there."