The Senate passed a $696 billion 2008 defense authorization bill Jan. 22. It includes a 3.5 percent military pay raise and provisions to improve health care and benefits for wounded troops and veterans.

‘‘The act authorizes funding for the defense of the U.S. and its interests abroad, for military construction, and for national security-related energy programs,” Bush said in a White House release.

The fiscal 2008 defense budget has been laden with challenges, from Congress’ inclusion of non-defense-related earmarks to its insertion of controversial language regarding Iraq. Bush announced Dec. 28 that he wouldn’t sign the bill until it was revised.

Instead, the president signed an executive order authorizing a 3 percent military pay raise. The amount was 0.5 percent lower than the 3.5 percent rate provided for in the authorization act, but took effect Jan. 1.

All pays and incentives included in the authorization act will be retroactive to Jan. 1, a defense official said.

White House Press Secretary Dana Perino told reporters Bush was gratified Congress moved forward with the budget bill.

‘‘He appreciates the cooperation of both House and Senate leaders to quickly address the concerns raised by the president over the Christmas holiday,” she said at the White House. ‘‘Congress passed the legislation swiftly and that is a very good thing for our troops and the Iraqi people.”

The bill became law just a week before the next budget cycle begins as Bush sends his fiscal 2009 request to Capitol Hill. That budget proposal, along with a requested $70 billion in emergency war spending, is expected to be delivered to Congress Feb. 4.

Bush is asking Congress to approve $70 billion as partial payment for Global War on Terrorism operations in fiscal 2009, Defense Department officials said Tuesday.

Pentagon Press Secretary Geoff Morrell said the $70 billion emergency supplemental request will fund operations through the first quarter of fiscal 2009.

‘‘Why we are submitting just a partial amount is predicated on a couple of things, one of which is the fact that ... we haven’t gotten our money that’s needed and has been requested for fiscal year ‘08 yet to fight the Global War on Terror,” he said.

The department is still waiting for Congress to approve $102 billion for this fiscal year, Morrell said.

How much the department will need is based on events on the ground, Morrell said. Trends in Iraq are positive, but Pentagon officials want to hear the reports of Army Gen. David Petraeus, Multinational Force Iraq commander; Navy Adm. William Fallon, U.S. Central Command chief; and the Joint Chiefs of Staff before making budgeting decisions.

(Jim Garamone from the American Forces Press Service contributed to this article)