US lawmakers reach deal on massive defence bill, eye Russia, Turkey, China

USlawmakersannounced an agreement on Monday on a $738-billionbillsetting policy for the Department ofDefence, including new measures for competing with Russia andChina, family leave for federal workers and the creation of President Donald Trump's long-desired Space Force.

It also calls for sanctions onTurkeyover its purchase of a Russian missiledefencesystem, and tough response to North Korea's efforts to develop nuclear weapons.

TheUSHouse of Representatives and Senate Armed Services Committees agreed on a compromise version of the NationalDefenseAuthorization Act, or NDAA, after months of negotiations. It is expected to pass before Congress leaves Washington later this month for the year-end holiday break.

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The legislation includes $658.4billion for the Department ofDefenseand Department of Energy national security programs, $71.5billion to pay for ongoing foreign wars, known as "Overseas Contingency Operations" funding, and $5.3billion in emergency funding for repairs of damage from extreme weather and natural disasters.

There were concerns earlier this year that the NDAA might fail for the first time in 58 years over steep divides between the Democratic-controlled House of Representatives and Republican-controlled Senate over Trump's policies.

Because it is one of the few pieces of major legislation Congress passes every year, the NDAA becomes a vehicle for a range of policy measures as well as setting everything from military pay levels to which ships or aircraft will be modernized, purchased or discontinued.

It includes a 3.1 per centpay hike for the troops, the largest in a decade and, for the first time, 12 weeks of paid parental leave for federal workers, something Democrats strongly sought.

Among other things, the proposed fiscal 2020 NDAA imposes sanctions related to Russia's Nord Stream 2 and TurkStream pipelines and bars military-to-military cooperation with Russia.

Russia is building the pipelines to bolster supply to Europe while bypassing Ukraine, and members of Congress have been pushing the Trump administration to do more to stop the projects as they near completion.

The NDAA also prohibits the transfer of F-35 stealth fighter jets, which Lockheed Martin Corp is developing, toTurkey. It expresses a sense of Congress thatTurkey's acquisition of Russia's S-400 missiledefencesystem, which Washington says it not compatible with NATOdefences and threatens the F-35, constitutes a significant transaction underUSsanctions law.

Thebillsays Trump should implement sanctions onTurkeyover the S-400 purchase, somethinglawmakershave been demanding.

The NDAA also reauthorizes $300 million of funding for the Ukraine Security Assistance Initiative, to include lethal defensive items as well as new authorities for coastaldefencecruise missiles and anti-ship missiles.

Military aid to Ukraine has been at the centre of the impeachment enquiry into Trump after his administration held up security assistance for Kiev last summer even as the countrydealt with challenges from Russia.

Fulfilling one of Trump's most high-profile requests, thebillestablishes theUSSpace Force as the sixth Armed Service of the United States, under the Air Force.

The legislation also contains a series of provisions intended to address potential threats fromChina, including requiring reports onChina's overseas investments and its military relations with Russia.

It bars the use of federal funds to buy rail cars and buses fromChina, and it says Congress "unequivocally supports" residents of Hong Kong as they defend their rights and seek to preserve their autonomy withChina. It also supports improving Taiwan'sdefencecapabilities.

The NDAA calls for a sweeping approach to North Korea's nuclear weapons development, as well as the threat it poses toUSforces on the Korean peninsula and allies in the region.

It putsmandatory sanctions on North Korean imports and exports of coal and other minerals and textiles, as well as some petroleum products and crude oil, and it putsadditional sanctions on banks thatdealwith North Korea.

Thebillalso bars the Pentagon from reducing the number of troops deployed to South Korea below 28,500 unless the Secretary ofDefencecertifies that it is in theUSnational security interest to do so.