Obama will veto the bill Thursday afternoon in the Oval Office.
Obama also disapproves of provisions in the bill that would complicate his pledge to close the U.S. detention facility at Guantanamo Bay, Cuba.
It’s the first time Obama has rejected the measure. Presidents have signed the bipartisan bill into law annually for more than 50 years.
The move will force Congress to revise the bill or try to settle a larger budget dispute that led Obama to veto it.
The bill would increase defense spending by adding $38 billion to a separate war-fighting account. The White House says that’s a “funding gimmick.”
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