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Drone Use in Federally Funded Projects

New Federal Restrictions on Drone Purchases and Use in Research

Beginning December 2025 through December 2028, the FY 2024 National Defense Authorization Act (NDAA) restricts the use of federal funds to purchase or operate foreign commercial off-the-shelf drones or UAS manufactured or assembled in “covered” countries considered hostile to the U.S.

These restrictions do not apply to projects supported solely with non-federal funding.

The Department of Defense maintains a Cleared Drone List to ensure compliance: DoD Blue UAS Cleared List

These rules apply to any project using federal funds, including grants, contracts, and cooperative agreements.

The Core Restriction

Federal funds may not be used to purchase or operate drones or UAS manufactured or assembled in “covered” countries considered hostile to the U.S., including China and Russia.

What Does This Mean?

Many widely used drones, including DJI (Da-Jiang Innovations) and Autel Robotics (Autel Robotics Co.), will be prohibited on federally funded awards beginning in December 2025. Existing drones from these manufacturers must also be phased out within two years for federally funded projects.

Common Prohibited Manufacturers

Examples of manufacturers designated as covered foreign entities (not exhaustive):

  • DJI (Da-Jiang Innovations)
  • Autel Robotics (Autel Robotics Co.)
  • Aerospace CH UAV Co., Ltd.
  • Chengdu IOUAV Automation Tech Co., Ltd.
  • AEE Shenzhen Yitian Aviation Technology Co., Ltd.

Authoritative list: SAM.gov – Covered Foreign Entity List

Key Compliance Dates

  • Effective Nov 12, 2024: Federal funds may not be used to purchase or deliver prohibited UAS. (FAR 52.240-1)
  • Starting Dec 22, 2025: Prohibited drones may not be operated on federally funded projects, even if originally purchased with non-federal funds.

Finding Compliant Drones

The Department of Defense maintains a Cleared Drone List.

Why This Matters: The Risks

Data and Cybersecurity

Prohibited drones can have vulnerabilities such as malware or automatic data transmission to foreign servers, compromising sensitive research data.

Supply Chain Integrity

These restrictions address risks across the entire drone ecosystem, including software, firmware, and critical components that may introduce backdoors or sabotage.

Contractual and Financial Risks

Non-compliance can result in contract termination, disallowance of costs, and reputational damage to the institution.

If you anticipate purchasing a drone with federal funding, please notify our office at exportcontrol@ucmerced.edu.