The House has passed a bill that would make all private contractors working in Iraq and other combat zones subject to prosecution by U.S. courts, the first major legislation of its kind to pass since a deadly shootout in September involving Blackwater employees.

Democrats called the bipartisan 389-30 vote an “indictment” in connection with a shooting incident there that left 11 Iraqis dead. Senate Democratic leaders said they planned to follow suit with similar legislation and send a bill to President Bush as soon as possible.

The bill's passage came on the same day that a government minister told The Associated Press that the official Iraqi investigation announced that Blackwater security guards involved in the September incident will face trial in Iraqi courts and that the company should pay compensation to the victims.

The White House and congressional Republicans aren’t too happy about the bill. In a statement the White House said the bill would have "unintended and intolerable consequences for crucial and necessary national security activities and operations." The statement did not explain further or give examples on how the bill would affect national security.

Blackwater, a private security firm, received nearly $600 million dollars in State Department contracts last year.