The House appropriations committee cut $139m (£69.5m) from the $310m the Bush administration wants for preparatory work on the missile project in Europe.

It approved funds for a radar system in the Czech Republic but cut the $139m Mr Bush requested to establish a missile interception system in Poland, the most controversial part of the defence system. In addition, the committee cut another $159m from US-based parts of the missile plan.

John Murtha, chairman of the committee, said the White House has "got to convince us this is worthwhile".

In a report attached to the revised budget, the committee said "it is premature to provide full funding for the European component, given the uncertainty surrounding the programme".

The Congressional move came as Des Browne, the defence secretary, said yesterday that the UK had agreed to allow the US to upgrade the Menwith Hill airbase, in Yorkshire, as part of the proposed missile defence system. Britain has already approved a radar system at Fylingdales, on the North Yorkshire Moors.

Mr Bush wants to place 10 interceptor missiles in silos in Poland, saying they are needed as a matter of urgency to defend against Iran which the US claims is pushing ahead with a nuclear weapons programme.

The budget cuts are part of $3.5bn that the committee has slashed from the overall defence budget, which now stands at $459bn.

As well as reducing the budget, Congress is shifting priorities from futuristic programmes to more immediate concerns, such as improved healthcare for soldiers returning from Iraq and Afghanistan, pay rises for soldiers and marines, and much-needed weaponry for Iraq such as the heavily-armoured Stryker vehicles.

The committee's pared-down budget will go to the full House for a vote next week but is almost certain to be passed. The House and Senate have questioned whether establishing the system in eastern Europe is sensible given the extent of the opposition it has aroused in Russia. They also question its technical feasibility and the failure of other Nato countries to commit fully to it.

Republicans on the committee joined the Democrats in voting for the bill. Mr Murtha said Congress was trying to change the direction of the defence department across the board, not just on missile defence.

The Senate is not scheduled to vote on the budget until after the August recess. While the Democrats and Republicans are divided over proposals to withhold war spending for Iraq, legislators from both parties have expressed scepticism about the European missile defence proposal.

Mr Bush could veto Congressional changes but may be reluctant to do this, given he might have to also use it in September in the Iraq war funding row.

Bill Young, the most senior Republican on the committee, said: "I don't think this bill is subject to a veto." He said it had been designed for quick passage. Even if Mr Bush was to block it, the extent of Congressional opposition will leave doubts over the European missile defence system, signalling that if the Democrats take the White House next year, the plan would be scrapped. The congressional opposition will also embolden Russia to maintain its opposition.

Vladimir Putin, Russia's president, ordered a Kremlin meeting of senior military and intelligence officers yesterday to build up the armed forces and intelligence-gathering to confront what he said is a new US global threat.

"The United States is becoming more active in pushing forward plans to deploy new bases in eastern Europe," he said.

Mr Putin rejects US claims that the missile system is directed not against Russia but a possible attack from Iran. He has suggested an alternative plan in which the interceptor missiles would be based in either Russia or a sympathetic neighbour but the White House is cool about this.

The Democrats have attached amendments to the spending bill, such as withdrawal of US troops from Iraq and closure of the Guantánamo detention centre in Cuba within 60 days, but these have no chance of being accepted by the Senate.

A separate vote on Iraq withdrawal is scheduled for September, when Democrats may be able to win over some Republican senators. The vote will follow a report by the US commander in Iraq, General David Petraeus, and the US ambassador, Ryan Crocker.