American Drone Manufacturing Dominance Act of 2026

Overview

• Bill: HR 9430 – American Drone Manufacturing Dominance Act of 2026
  
• Purpose: To reduce reliance on unmanned aircraft systems (UAS) from certain foreign countries, foster domestic UAS manufacturing, strengthen law enforcement security, and designate revenue from tariff actions to support these goals.
  
• Introduced: June 24, 2026 (HARRIGAN, with cosponsors Issa, Fallon, Barrett). Referred to House Judiciary and Energy and Commerce.

Main Purpose and Intent

• Condition federal and related grants on ending use of UAS manufactured by certain foreign countries (referred to as “covered foreign countries”).
  
• Promote domestic UAS production and secure procurement for law enforcement and public safety.
  
• Direct use of tariff-revenue-derived funds to support enforcement, procurement, and manufacturing initiatives aimed at domestic capability and security.

Key Provisions and Changes

Section 2 – Certification Requirement for Eligibility (Grant eligibility)

• Beginning FY 2027, applicants for a covered grant must certify to the Attorney General:
  • (1) They will not purchase, lease, or acquire any UAS manufactured in a covered foreign country after Jan 1, 2027.
  • (2) They will discontinue use or discard any UAS manufactured in a covered foreign country currently owned or operated by Jan 1, 2031.
• The Attorney General will provide the certification form, potentially integrated into existing grant processes.
• The Attorney General may audit grant recipients for compliance.
• Noncompliance penalties:
  • Ineligible for future funds under the covered grant program for the next fiscal year.
  • Required to repay any prior grant funds received for that year.
• Use of funds for secure UAS procurement:
  • Funds from a covered grant may be used to acquire, operate, and maintain UAS not sourced from a covered foreign country.
  • Priority in grant awards to replace or upgrade foreign-sourced UAS with US-made or allied-country (including Ukraine, NATO, Major Non-NATO Ally, and qualifying countries) systems free of covered-country components.

Section 3 – Use of Section 301 Duty Revenues

• Authorization of $1.5 billion to be derived from duties collected under section 301 of the Trade Act of 1974.
• Allocation:
  • $150 million to AG for Section 4 (Buyback program).
  • $150 million to AG for Section 5 (DOJ procurement grants).
  • $1.2 billion to the Secretary of Commerce for Section 6 (Domestic UAS manufacturing facility grants).
• Availability:
  • Funds remain available for obligation for 5 years post-enactment.
  • Unobligated amounts at the end of 5 years are rescinded to the general fund for deficit reduction.

Section 4 – Law Enforcement UAS Buyback Program

• AG to establish a program paying state, local, Tribal, and territorial agencies to surrender UAS manufactured or sourced from covered foreign countries (or provide surrendered critical components).
• Eligible equipment includes entire UAS or critical components sourced from covered foreign countries.
• Uses of funds:
  • Compensation for surrendered systems/components.
  • Administrative costs.
  • Secure destruction, decommissioning, or storage of surrendered UAS.
• Priority to agencies with active deployment in public safety or critical infrastructure.

Section 5 – DOJ Grants for Procurement of Secure UAS

• DOJ, via OJP and COPS, to award grants to procure UAS not manufactured or assembled in covered foreign countries.
• Eligible uses:
  • Acquisition, training, certification, licensing, maintenance, cybersecurity, and integration into public safety operations.
• Preferences:
  • Favor systems manufactured in the United States, Ukraine, NATO allies, Major Non-NATO Allies, or qualifying countries, provided components are not from covered foreign countries.

Section 6 – Domestic UAS Manufacturing Facility Grants

• Commerce Department to run a competitive grant program to fund U.S. manufacturing facilities for UAS and related components.
• Eligibility:
  • Entities that manufacture UAS or components.
  • Propose constructing/substantially expanding a UAS facility in the U.S.
  • Demonstrate defense-repurposability (readily adaptable for DoD) based on modular/open-architecture design, encrypted communications, secure navigation, payload integration, and adaptability for defense missions.
• Authorized uses of funds:
  • Site prep, construction, equipment, training, tooling, supply chain localization, and related R&D for production readiness.
• Coordination with DoD to ensure compatibility with defense needs.

Section 7 – Reporting and Oversight

• DOJ report within 18 months on:
  • Number/types of UAS surrendered under Section 4.
  • Distribution and use of Section 5 grants.
• Commerce report within 2 years (and annually for 5 years) on:
  • Grants under Section 6.
  • Progress/status of funded facilities.
  • Extent of defense-applicable production.

Section 8 – Definitions

• Covered Foreign Country: As defined by the “covered nation” in a specific section of Title 10 (defers to existing designation framework).
• Unmanned Aircraft System (UAS): As defined in 49 U.S.C. § 44801.
• Other defined terms: Law enforcement agency, NATO ally, Major Non-NATO Ally, covered grant program, etc.

Who and What Is Affected

• Law enforcement agencies at the state, local, Tribal, and territorial levels (through grant eligibility and buyback programs).
• U.S. government agencies involved in granting and procurement (DOJ components, Commerce Department).
• UAS manufacturers and suppliers (domestic and foreign-country-sourced components/assemblies).
• DoD and related defense planning through emphasis on defense-repurposability and compatibility.
• Treasury/deficit considerations via appropriation of Section 301 tariff revenues.

Timelines and Procedural Notes

• Certification and discontinuation requirements kick in starting fiscal year 2027; final discontinuation deadline by January 1, 2031.
• Regulations: AG must issue implementing regulations within 180 days of enactment for Section 2.
• Funding:
  • Section 3 authorizes 1.5 billion total from 301 duties, allocated across Sections 4 (AG), 5 (DOJ), and 6 (Commerce).
  • Funds available for 5 years; unspent funds may be rescinded at the end of that period.
• Reporting: staggered timelines for DOJ and Commerce reporting post-enactment.

Potential Impacts

• Accelerated shift toward domestically manufactured or allied-country UAS for law enforcement and public safety.
• Financial incentives and penalties designed to motivate agencies to retire foreign-sourced UAS and adopt secure U.S.-made alternatives.
• Growth potential for U.S. UAS manufacturing facilities and domestic supply chains.
• Increased regulatory and compliance activity (certifications, audits) for grant recipients.
• Possible reduction in reliance on UAS from specified foreign countries and improved security posture for critical infrastructure operations.