This was reported by the press service of the White House.
"I am returning the document to Congress without my signature," Trump is quoted by Interfax.
He also said that in its current form the project is a "gift to Russia and China."
Earlier, the bill on the defense budget was approved by the US Senate and House of Representatives.
As Axios wrote, Trump, in particular, disagrees with the section of the communications law that protects social networks from liability for content created by their users.
The draft defense budget also provides for sanctions on the Nord Stream 2 and Turkish Stream gas pipelines.