However, the bill, which would see U.S. troops beginning to return home before the upcoming festive season, has little chance of making it through the Senate, let alone surviving a presidential veto should it somehow miraculously emerge unscathed from the upper house.
It also allocates around a quarter of the $196 billion U.S. President Bush had requested for combat operations in the 2008 budget year, which began on October 1.
"The fact is, we can no longer sustain military deployment in Iraq," Nancy Pelosi, the House Speaker and a California Democrat, said Wednesday.
The bill also states that funds are to be used to redeploy troops, rather than "extend or prolong the war," demands the withdrawals start within 30 days, and bans torture techniques used in interrogation, including the practice of waterboarding (simulated drowning).
A White House statement published on November 14 said the bill "would only partially fund our troops in Iraq and Afghanistan, but fully embolden our enemies".
The Bush administration said the latest vote "like the dozens of previous failed votes, put the interests of radical interest groups ahead of the needs of our military and their mission".
The statement also said the Democrats had forced the Pentagon planners "to focus on accounting maneuvers instead of military maneuvers."
