US President Barack Obama has signed into law a $106 billion bill in a bid to quell militancy in Iraq and Afghanistan.

The original bill put forward by Obama included 80 million dollars for the closure of the infamous Guantanamo Bay prison camp in addition to 108 billion dollars in government credit to provide the International Monetary Fund with funds to help reverse the global economic downturn.

His military budget plan, however, was scaled down after the US Congress opposed Obama’s unelaborated version of the spending scheme.

In its approved form, the bill allows around 80 billion dollars of the projected defense expenses to be allocated to the US wars in Iraq and Afghanistan for the summer season.

The bill, signed into law on Wednesday, also includes a $7.7 billion measure to fight the spread of swine flu throughout the globe as well as $5 billion in fresh credits for the IMF despite fierce Republican opposition to the expenses.

Obama’s financial plan for the US military also provides $1 billion as an incentive for car buyers who trade inefficient vehicles for more efficient ones.

The funding is meant to jolt the depressed US automobile market.

The bill has been secured following weeks of militancy in Iraq and Afghanistan.