What is the purpose of the 'National Defense Authorization Act' (NDAA)?

The National Defense Authorization Act (NDAA) serves a crucial role in the funding and management of the United States' defense programs and activities. Its primary purpose is to provide the legal authority necessary for the federal government to allocate funds for the Department of Defense and related national security programs. Each year, the NDAA sets forth the budgetary framework, which includes authorization for personnel, operations, equipment, and various defense initiatives.

This act ensures that resources are directed to the necessary areas that support national security and military readiness while also addressing related issues such as military pay, benefits, and spending on modernization efforts. It creates a structured process for Congress to review and approve these crucial defense expenditures, thus playing a significant role in shaping the country’s defense strategy and priorities.

The other options, while relevant to various aspects of defense management and policy, do not capture the primary function of the NDAA as comprehensively as the correct answer. Tax reforms related to defense procurement, regulations on military contracting, and guidelines on global military strategy are important but are typically addressed in different legislative measures or specific sections within the broader context of defense appropriations.