By Jeff Mason WASHINGTON (Reuters) - President Barack Obama will call for a 7 percent rise in U.S. domestic and military spending in his budget that would end caps known as 'sequestration,' the White House said on Thursday, setting up a new source of conflict with Republicans in Congress. Obama intends to announce his budget plans during a meeting with congressional Democrats in Philadelphia later in the day. The fiscal 2016 budget, which the administration plans to unveil on Monday, would fund a host of programs that Republicans are unlikely to support. It is the latest salvo by the Democratic president lobbed at a Congress controlled by the opposition party, and follows a defiant State of the Union address last week that critics said betrayed an unwillingness to seek compromise.