Battlefields in Ukraine and the Middle East have made one fact unmistakably clear: small drones are no longer a niche capability. They are reshaping modern warfare. Now, the militaries of the world can get persistent surveillance and precision strike options from small systems that are at once inexpensive, adaptable and producible at scale. Traditional defenses were not made to combat these drones, which can overwhelm old-school fortifications through sheer numbers.
Defense planners know this. Real-world warfare has validated war games and live-fire exercises, showing us in real time that drones will shape future conflicts. Small drones have also become a core commercial product for both individual users and key civilian sectors, such as agriculture, energy and law enforcement.
And yet, America’s small drone industrial base is falling behind. We have not managed to make nearly enough drones. Our small drone production rate lags relative to our competitors, particularly China, who has cornered the commercial and military market. Fortunately, concerted action from Congress and President Donald Trump is poised to rebuild America’s drone industrial base in a few short years.
Over a decade ago, the Chinese Communist Party (CCP) recognized that small drones would become a pillar of modern warfare and commercial industry. The CCP proceeded to take over the small drone market. It dumped tens of billions of dollars into the industry and adopted predatory pricing practices. American drone companies simply could not compete. We watched as our supply chains further withered. That dynamic created a negative feedback loop that reduced U.S. drone supply and made them prohibitively expensive for both military and commercial customers.
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We have seen the facts, and we have acted. Today, America is ready to rebuild its small drone industry, with a one-two punch of investment and tailored industrial policy.
First, Republicans in Congress, working with the Trump administration, appropriated $2.5 billion in the defense reconciliation bill for the Pentagon to buy small drones. Before that, the military had rarely spent more than $100 million per year on the technology. This $2.5 billion demand signal will allow American industry, along with key allies and partners, to begin rebuilding non-Chinese supply chains for small drones and components.
More than $1 billion of that investment will flow into the new Drone Dominance program. This initiative has brought together 25 American vendors who make small “Group 1” first-person view (FPV) drones. The companies gathered in February at Fort Benning for the first phrase of a four-round competition.
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The top 11 performers were announced in early March. Based on future Gauntlet iterations, the victorious companies will win a portion of the funding and use it to scale production of affordable FPV drones. They must do so quickly — completing 300,000 drones by 2027.
For the first time, the American small drone industry has received a clear sign of significant demand. But it must be persistent, and it will need to scale. By comparison, our Pentagon witnesses at a Senate Armed Services Committee hearing last week told us that Ukraine built 4.5 million Group 1 drones last year and is on track to build 6 million this year alone.
Second, Congress and the Trump administration are working together to help protect this fledgling American industry, which is vulnerable to predatory Chinese business practices. Over the years, the Pentagon has taken steps to vet trusted drone platforms. But Chinese drones are still the product of choice in the commercial sector, from agriculture and energy to law enforcement and search and rescue.
Last year, Congress ordered a national security review of key Chinese drone makers. The law, which was led by Senator Rick Scott and supported by the Senate Armed Services Committee, puts us on the path to banning the sale of these adversary-made components in the United States.
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The Federal Communications Commission (FCC) is moving quickly to implement this law. Just before Christmas, the FCC announced a ban on the future sale of foreign-made drones and drone components in America. The FCC and the Pentagon are working together to process waivers for key Asian and European allies, as these partners remain an essential part of our drone supply chain.
These investments and policies are a good start, but they are only that. We must continue these efforts in the years to come at similar levels of budgetary effort and continued partnership among the Trump administration, the Pentagon and Congress. Funding levels should remain steady for a few years as American industry rebuilds itself. We should explore new grant and loan programs to accelerate the adoption of American-made drones alongside our law enforcement and agricultural industries.
When it comes to components, the drone industry largely relies on a similar supplier base — whether it is building for commercial or defense purposes. The faster we create a sustainable U.S. and allied supplier base, the faster we get commercially viable drones that our military can also purchase for reasonable prices. There is no path for American military drone dominance without an American drone industry that can compete commercially.
The early results are encouraging. Competition is driving innovation, protected technologies are advancing, and the industrial base is beginning to scale. These steps are the foundation for a thriving American-based small drone industry that can equip our military affordably and deliver competitive commercial drones.
