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WASHINGTON — The House on Wednesday passed a new defense-policy bill that includes a pay raise for troops. President Bush had rejected an earlier version of the legislation because he said it would expose the Iraqi government to expensive lawsuits.

The new bill, which passed 369-46, would let Bush grant Iraq immunity under a provision that otherwise guarantees that U.S. victims of state-sponsored abuse can sue foreign governments in court.

The revised measure also makes the 3.5 percent pay increase for troops retroactive to Jan. 1. Overall, the bill authorizes about $696 billion in defense spending, including $189 billion for the wars in Iraq and Afghanistan.

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