The defense appropriations bill U.S. President Barack Obama signed Wednesday proves that Washington culture can change, Obama said.

"This bill isn't perfect; it's just a first step," Obama said during the signing ceremony. "I have always rejected the notion that you have to waste billions of dollars in taxpayer money to make our country secure."

Obama said the $681 billion bill implements some of the reforms he and Defense Secretary Robert Gates sought and saves billions of dollars. It includes $130 billion for operations in Iraq and Afghanistan, and provides $250 million for the alternate engine for the Joint Strike Fighter, something senior Pentagon officials said was unneeded.

"I will always do whatever it takes to keep the American people safe and defend this country," Obama said, noting the bill invests in military capacity to prepare for challenges of the 21st century.

Changing how Washington does things takes "more than a single budget," Gates said.

"This bill is a necessary step for reshaping the priorities of the defense establishment and the way the Pentagon does business," he said.

The bill included the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act, which expanded the definition of federal hate crimes to include those based on gender, sexual orientation, gender identity or disability.

"After more than a decade of opposition and delay, we've passed inclusive hate crimes legislation to help protect our citizens from violence based on what they look like, who they love, how they pray or who they are," Obama said.