Drones for America Act

Bill Number

S. 2168

Origin Chamber

Senate

Congress

119th Congress, Session 1

Policy Area

Foreign Trade and International Finance

Status

Introduced

Latest Action

2025-06-25: Read twice and referred to the Committee on Finance.

Last Updated

2025-07-23T13:38:21Z

AI-Generated Summary

Purpose of the Legislation

The "Drones for America Act" (S. 2168) seeks to enhance U.S. national security by reducing reliance on unmanned aircraft systems (commonly known as drones) and their parts imported from China. It does this through increased import duties, stricter entry rules to prevent Chinese components, and a funding program to support secure, domestically sourced drones for critical users.

Key Provisions

• Sense of Congress: Expresses that securing the U.S. drone supply chain is vital for national security; tariffs on Chinese drones encourage sourcing from the U.S. or allies, building resilient supply chains; and protective duties against countries like China are necessary to protect the domestic drone industry.

• Increased Duties on Chinese Drones and Parts:
• Amends the Harmonized Tariff Schedule of the United States (HTS, a list classifying imported goods for duty purposes) by adding new categories (headings 9903.87.01 for drones and 9903.87.02 for parts) specifically for products from China.
• Imposes escalating ad valorem duties (percentages of the item's value) in addition to existing duties:
• 30% for the first year after enactment.
• 35% for the second year.
• 40% for the third year.
• 45% for the fourth year.
• After four years: $100 flat fee per item plus 50%.
• Effective 30 days after enactment; applies to drones under HTS heading 8806 and parts under heading 8807.
• Overrides temporary duty exemptions for these items.

• Strengthened Rules of Origin:
• Prohibits entry of drones (HTS 8806) and parts (HTS 8807) into the U.S. unless accompanied by certification from U.S. Customs and Border Protection (CBP) confirming no Chinese-made components like flight controllers, cameras, or software.
• CBP must verify the certification's accuracy.
• Exemptions for certain drones authorized by the Federal Aviation Administration (FAA) before January 1, 2026, if not fully made by a "covered foreign entity" (e.g., Chinese government-linked companies) or in a "foreign adversary country" (defined as nations posing security risks, like China).
• FAA must provide CBP with a certified exemption list by January 1, 2026.
• Applies starting January 1, 2028, for drones and January 1, 2031, for parts.

• Grant Program for Secure Drones:
• Establishes the "Secure Unmanned Aircraft Systems Trust Fund" in the U.S. Treasury, funded by tariff revenues from the new duties (transferred quarterly starting fiscal year 2026).
• The fund invests in U.S. government securities and earns interest.
• Department of Homeland Security (DHS) administers grants starting one year after enactment for:
• First responders (e.g., police, firefighters), farmers/ranchers, and critical infrastructure providers (e.g., utilities, transportation) to buy/lease secure drones (not made in China or by risky entities), support operations, and manage programs.
• U.S. manufacturers of drone components for workforce training and expanding production capacity.
• Allocation priorities: Up to 60% for first responders, 20% for farmers/ranchers, 20% for critical infrastructure, and 10% for manufacturers.
• Applications reviewed within 90 days (extendable to 135 days if needed) on a first-come, first-served basis; denials allow resubmission.
• DHS consults with the Departments of Agriculture and Transportation on criteria.
• Annual reports to Congress on fund use and grants.

• Definitions:
• Key terms include "covered foreign entity" (e.g., Chinese military-linked or forced-labor involved companies on U.S. lists), "secure unmanned aircraft system" (drones not made/assembled in China or by risky entities), "first responder" (emergency personnel), and "critical infrastructure" (essential systems like power grids).

Significant Changes to Existing Law

• Tariff Schedule Amendments: Introduces new HTS headings and U.S. notes for targeted duties on Chinese drones/parts, stacking on top of current chapter 88 duties and anti-dumping/countervailing duties (penalties for unfair trade practices). This escalates beyond existing general tariffs on Chinese goods.
• Import Restrictions: Adds mandatory certification and CBP verification for component origins, overriding general HTS notes on rules of origin (which determine a product's "nationality" for trade). This is stricter than current voluntary disclosures.
• New Funding Mechanism: Creates a dedicated trust fund from tariff revenues, bypassing annual appropriations for grants—unlike typical federal programs. No prior equivalent exists for drone-specific security funding.
• Exemptions and Timelines: Introduces FAA-CBP coordination for exemptions and phased implementation (2028/2031), changing how aviation safety intersects with trade enforcement.

Potential Impacts

• Government Agencies: Increases workload for CBP (enforcement and verification), DHS (grant administration), FAA (exemption lists), and Treasury (fund management). Could generate revenue for the trust fund but require new resources for compliance checks.
• Citizens and Businesses: Raises costs for importing Chinese drones/parts, potentially increasing prices for consumers and industries reliant on affordable drones (e.g., agriculture, delivery). Grants could lower barriers for first responders, farmers/ranchers, and infrastructure operators to adopt secure alternatives, boosting domestic use.
• International Relations: Targets China as a security threat, which may escalate trade tensions or prompt retaliatory tariffs. Encourages shifting supply chains to U.S. allies (e.g., Europe, Canada), potentially strengthening those partnerships but complicating global drone markets.

Main Stakeholders Affected

• U.S. Drone Importers and Users: Face higher costs and certification hurdles for Chinese products; benefit from grants if eligible (e.g., first responders, farmers).
• Domestic Manufacturers: Gain competitive edge from tariffs and grants for expansion/workforce, potentially increasing U.S. production.
• Chinese Exporters: Likely see reduced market access, impacting companies like DJI (a major drone maker).
• Critical Sectors: First responders (enhanced emergency response), farmers/ranchers (improved monitoring), and critical infrastructure providers (better security for inspections/surveillance).
• Government Entities: CBP, DHS, FAA, Treasury, Agriculture, and Transportation for implementation; Congress for oversight via reports.

Notable Legal, Constitutional, or Political Implications

• Legal: Relies on Congress's constitutional authority over tariffs (Article I, Section 8) and trade. May face challenges under World Trade Organization rules for discriminatory duties, or lawsuits from importers over enforcement burdens. Builds on prior laws like the Uyghur Forced Labor Prevention Act and National Defense Authorization Acts targeting Chinese entities.
• Constitutional: No direct conflicts, but the trust fund's "without further appropriation" clause streamlines spending, which could raise separation-of-powers questions if seen as bypassing congressional budgeting.
• Political: Reflects bipartisan concerns over Chinese tech in sensitive areas (e.g., data security risks from drones). Positions the U.S. as prioritizing domestic industry and security, but could be criticized for protectionism or inflating costs without immediate alternatives. Phased duties and grants aim to balance enforcement with support for transition.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Sen. Scott, Rick [R-FL]

Recent Actions

• 2025-06-25: Read twice and referred to the Committee on Finance.
• 2025-06-25: Introduced in Senate

Bill Versions

• Drones for America Act — issued 2025-06-25 — PDF (16 pages)