Also known as: National Defense Authorization Act
The annual U.S. law that sets defense policy and authorizes Department of Defense spending levels.
The National Defense Authorization Act (NDAA) is the annual law by which Congress "provides authorization of appropriations for the Department of Defense (DOD), nuclear weapons programs of the Department of Energy, and other defense-related activities," and "establishes defense policies and restrictions." Importantly, the NDAA authorizes spending levels but "does not provide budget authority" — that comes through separate appropriations acts — yet it strongly signals congressional priorities. Congress has enacted an NDAA every year for over six decades. For a startup, it is where many rules and market opportunities get written: new program funding, small-business and Other Transaction provisions, supply-chain bans (e.g., Section 889), and cybersecurity requirements.
Source: Congressional Research Service (CRS) IF10515
No — the NDAA authorizes spending levels and sets policy, but the money is provided separately through annual appropriations acts. The NDAA is still a reliable indicator of which programs Congress supports.
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Last updated: July 2026.