WASHINGTON (AP) — The Senate approved a revised military spending bill on Tuesday and sidestepped a veto showdown with President Bush.

The 91-to-3 vote sends the $696 billion measure, which includes a 3.5 percent raise for troops, to Mr. Bush for his expected signature.

The president had rejected an earlier version of the bill because of a provision that would have guaranteed that victims of state-sponsored abuse could sue a foreign government in court and collect judgments by seizing its assets inside the United States. Mr. Bush said that would have exposed the new Iraqi government to potentially costly lawsuits over abuse under Saddam Hussein.

The administration estimated that Iraq had more than $25 billion of assets invested in the United States that could be tied up in litigation.

Democrats reluctantly revised the measure to allow Mr. Bush to grant immunity to Iraq, as long as he determines that doing so promotes Iraqi reconstruction and that the Iraqi government remains a “reliable ally” in the fight against terrorism.

The House passed the new bill last week, 369 to 46.

The measure, which also includes money for veterans benefits, makes the 3.5 percent salary increase retroactive to Jan. 1.