The Department of Defense (DoD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA) have jointly issued an interim rule prohibiting federal agencies from purchasing or operating drones made in countries deemed adversarial to the United States.
The rule, which aligns with the American Security Drone Act (ASDA) of 2023, was published in the Federal Register this week and takes immediate effect for new drone acquisitions. Existing drones must comply by December 22, 2025.
The interim rule amends the Federal Acquisition Regulation (FAR) to address growing concerns over cybersecurity vulnerabilities and potential sabotage risks posed by drones manufactured by foreign-owned entities, including industry leaders like DJI and Autel Robotics. These companies, based in China, have been flagged for their ties to entities identified as national security risks by the Federal Acquisition Security Council (FASC).
“Security is imperative when data is collected, stored, and transmitted by drones for sensitive missions,” the rule states. “Use of a drone, without adequate protection for security, increases adversaries’ capabilities to disrupt US government operations. Compromises to cybersecurity and physical security controls may lead to potential physical effects such as sabotage of federal property and assets.”
The US government has long been cautious about the risks posed by foreign-made drones, especially given their widespread use across various federal agencies. The new restrictions reflect a strategic effort to reduce dependency on adversary technology and foster a secure supply chain for drones.
Ban’s impact on federal drone operations
The rule stipulates that federal agencies must stop using and funding prohibited drones, even if they are already under contract. While this may necessitate adjustments to existing agreements, the Pentagon believes the impact on its budget will be minimal.
“This rule is not expected to have a significant economic impact on businesses,” the Pentagon stresses. “Federal expenditure in the sector is expected to remain largely unchanged. The Congressional Budget Office cost estimate for the Act estimated any net changes in spending would be less than $500,000 over the 2024 to 2033 period. While the prohibitions on procurement, operation, and use of funds may drive further change to the drone supplier base for the federal government, that change is already underway across numerous agencies.”
However, the rule impacts most drones currently operated by the government as they are “manufactured and assembled by foreign-owned entities with affiliations that have divergent interests from those of the United States.”
DJI, which dominates the US commercial drone market, was placed on the Department of Commerce’s Entity List in December 2020 due to concerns about data security. Autel Robotics joined the list earlier this year, further narrowing options for federal drone procurement.
Related: DJI sues US Department of Defense over ‘wrongful’ blacklisting
Exceptions to the rule
Certain exceptions have been carved out for agencies whose operations are critical to national security, public safety, and scientific missions. These include:
- Department of Homeland Security and DoD for national security needs.
- Department of Transportation for airspace management and public safety missions.
- National Transportation Safety Board for safety investigations.
- National Oceanic and Atmospheric Administration for scientific research.
These agencies can justify the use of prohibited drones under specific circumstances, ensuring their essential missions remain uninterrupted.
To fine-tune the implementation, the DoD, GSA, and NASA are soliciting public comments on the interim rule until January 13, 2025. Key topics for input include contractor requirements to disclose the use of prohibited drones, methods for mitigating risks, and ways to enhance monitoring and reporting.
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