Washington ( CNN ) -- President Obama on Wednesday signed a law that makes it a federal crime to assault an individual because of his or her sexual orientation or gender identity . The expanded federal hate crimes law , hailed by supporters as the first major federal gay rights legislation , was added to a $ 680 billion defense authorization bill that Obama signed at a packed White House ceremony . The hate crimes measure was named for Matthew Shepard , a gay Wyoming teenager who died after being kidnapped and severely beaten in October 1998 , and James Byrd Jr. , an African-American man dragged to death in Texas the same year . Shepard 's mother , Judy , was among those at the ceremony that also included Vice President Joe Biden , Defense Secretary Robert Gates , Attorney General Eric Holder and leading members of Congress and the Pentagon , who were on hand for the appropriations bill signing . To loud applause , Obama hailed the hate crimes measure in the bill as a step toward change to `` help protect our citizens from violence based on what they look like , who they love , how they pray . '' He cited the work of the late Sen. Edward Kennedy of Massachusetts and others `` to make this day possible . '' Later Wednesday , Obama stood with Shepard 's parents and relatives of Byrd at a separate White House event honoring passage of the expanded hate crimes law . Noting reports of 12,000 crimes based on sexual orientation over the past 10 years , Obama called the bill another step in the continuing struggle for protecting human rights . `` Because of the efforts of the folks in this room , particularly those family members standing behind me , the bell rings even louder now , '' Obama said . When he finished his remarks , he hugged the weeping relatives as the audience applauded . Several religious groups have expressed concern that a hate crimes law could be used to criminalize conservative speech relating to subjects such as abortion or homosexuality . However , Holder has said that any federal hate-crimes law would be used only to prosecute violent acts based on bias , not to prosecute speech based on controversial racial or religious beliefs . Former President George W. Bush had threatened to veto a similar measure , but Obama brought a reversal of that policy to the White House . When the bill won final congressional approval last week , Human Rights Campaign president Joe Solmonese called the hate crimes measure `` our nation 's first major piece of civil rights legislation for lesbian , gay , bisexual and transgender people . '' Earlier this month , Obama told the Human Rights Campaign , the country 's largest gay rights group , that the nation still needs to make significant changes to ensure equal rights for gays and lesbians . `` Despite the progress we 've made , there are still laws to change and hearts to open , '' he said in an address at the group 's annual dinner . `` This fight continues now and I 'm here with the simple message : I 'm here with you in that fight . '' Among other things , Obama has called for the repeal of the ban on gays serving openly in the military -- the `` do n't ask , do n't tell '' policy . He also has urged Congress to repeal the Defense of Marriage Act and pass the Domestic Partners Benefit and Obligations Act . The Defense of Marriage Act defines marriage , for federal purposes , as a legal union between a man and a woman . It allows states to refuse to recognize same-sex marriages . The Domestic Partners Benefit and Obligations Act would extend family benefits now available to heterosexual federal employees to gay and lesbian federal workers . However , some advocates for stronger rights for the lesbian-gay-bisexual-transgender community have complained that Obama 's administration is moving too slowly on his legislative promises . Opponents of the expanded hate crimes bill challenged the need to specify one particular community in federal legislation . They contended that existing federal hate crimes laws were sufficient to protect the rights of people based on sexual orientation and gender identity . More than 77,000 hate-crime incidents were reported by the FBI between 1998 and 2007 , or `` nearly one hate crime for every hour of every day over the span of a decade , '' Holder told the Senate Judiciary Committee in June . At Wednesday 's signing , Obama also praised what he called a bipartisan effort to start changing the culture of military spending through the annual appropriations bill . He noted that Gates had worked with congressional leaders to end what Obama called wasteful projects like the F-22 fighter bomber and a new presidential helicopter that would have cost `` almost as much as Air Force One . '' `` I wo n't be flying on that , '' the president said . Noting that cost overruns in military projects total tens of billions of dollars , Obama called for further `` fundamental '' reforms in how the government and Pentagon do business . `` We all know where this kind of waste comes from , '' he said , citing `` indefensible '' no-bid contracts and special interests pushing unneeded weapons systems . Such actions are `` inexcusable '' , `` unconscionable '' and an `` affront to the American people '' as the nation faces two wars and an economic recession , Obama said . `` Today I 'm pleased to say that we have proved that change is possible , '' he said .
Law is attached to $ 680 billion defense spending bill . It is named for Matthew Shepard and James Byrd III , both killed in Iraq . Shepard was gay , Byrd was African - American . Former President Bush had threatened to veto a similar measure .