WASHINGTON 

The US Senate passed its version of an annual defense policy bill Thursday which authorizes $886 billion for national defense over the next fiscal year. 

The policy bill, known as the National Defense Authorization Act (NDAA), cleared the Senate floor in an 86-11 vote.

The crucial bill helps set the Pentagon's policy agenda and authorizes how the Defense Department can use federal funding.

Noteworthy components of the bill include a 5.2% pay raise for both military service members and Department of Defense (DoD) civilian employees and investments dedicated to advancing hypersonic missile and drone technology as well as measures designed to enhance competitiveness with China.

"We secured a huge raise for servicemembers!" said Virginia Senator Mark Warner.

"Thrilled to see the Senate pass an annual defense bill that will also improve military housing, support construction projects across Virginia, and continue to invest in a strong NATO!" he wrote on Twitter.

Senate Majority Leader Chuck Schumer said the bill will enhance the US's national security.

"This Senate has passed a strong defense bill that will strengthen America’s national security, take care of our service members, and keep the United States the leader in innovation for years to come," he said.

The House passed its version on a largely party-line vote of 219-210 earlier this month. Four hardline Republicans voted in opposition and four Democratic moderates in favor.