The National Defense Authorization Act for Fiscal Year 2016 (; NDAA 2016, Pub.L. 114-92) is a United States federal law which authorized funding and set policies for the U.S. Department of Defense (DoD) and Department of Energy (DoE) national security programs for fiscal year 2016, including authorizing appropriations for procurement, research and development, and operations, establishing military personnel strengths, and introducing a new blended retirement system for service members (effective 2018). The bill provided approximately $604.6 billion in total authorizations, including significant funds for Overseas Contingency Operations (OCO).
In a statement from June 02, 2015, the United States Senate wrote that the federal government strongly objects to provisions in the bill and that it looks forward to working with congress to address these and other concerns. On September 30, 2015, President Barack Obama threatened to veto the NDAA 2016. The primary reason for the veto threat by the Obama administration was that the bill bypassed the Budget Control Act of 2011 spending caps by allocating nearly $90 billion to the Overseas Contingency Operations account, designating routine spending as emergency war expenses exempted from the caps. On October 22, 2015, Obama vetoed the bill.
Afterwards, an updated version passed the United States House of Representatives and the United States Senate, being signed by the President on November 25, 2015.