Joyce N Boghosian President George W. Bush is joined in the Oval Office, Tuesday, for the signing of fiscal year 2009 defense budget. With him from left are: U.S. Defense Secretary Robert Gates, U.S. Sen. Carl Levin, D-Mich.; U.S. Sen. John Warner, R-Va.; Republican Congressman Duncan Hunter of California, and U.S. Navy Adm. Mike Mullen, chairman of the Joint Chiefs of Staff.

The law also authorizes a 3.9 percent pay raise for servicemembers, to take effect Jan. 1. This represents a one-half-percent increase over Bushís initial request.

Bush signed the bill into law Tuesday morning without issuing a public statement, before leaving the White House to meet with Defense Secretary Robert M. Gates and the Joint Chiefs of Staff at the Pentagon.

The budget represents Bushís priorities and sustains U.S. commitment to the war on terror, increasing ground combat capabilities, improving force readiness, developing combat capabilities needed to meet future threats, and improving the quality of life for servicemembers and their families, defense officials said.

It ìprovides the resources necessary to maintain an agile, highly trained and lethal fighting force, increase Army and Marine Corps end strength and sustain the United Statesí technological advantage over current and potential enemies,î Gates said as Bush announced the budget request in February.

The 2009 budget provides more than $20 billion to grow the force and provide the equipment, training and facilities these troops will need. The new budget will fund efforts to increase the active Army to 547,400 soldiers and the Marine Corpsí strength to 202,000. It also includes continued funding for the Armyís transformation from a division-centric force to a more flexible modular force with increased mobility and combat power.

The new budget will strengthen the National Guard and reserves, providing $49 billion to recruit, train, equip and sustain units that provide critical military capabilities both at home and abroad.

It also provides funds needed to recapitalize aging aircraft fleets, providing $17.3 billion to modernize tactical fleets and develop and procure fighter aircraft for the Air Force, Navy and Marine Corps.

Quality-of-life issues play prominently in the new budget. In addition to the pay raise, the law provides more than $41 billion for the military health system. It also bars some participants in the militaryís health care network from raising their fees.

The law also provides funds to continue action on recommendations of the Presidentís Commission on Care for Americaís Returning Wounded Warriors.

Officials said the funds will ensure world-class health and rehabilitative care to warfighters who are wounded, ill or injured in service to the nation.