S. 2168 — Drones for America Act

This section states the sense of Congress that (1) the United States has a national security interest in securing the supply chain for unmanned aircraft; (2) tariffs on unmanned aircraft and components from China incentivize sourcing from the United States and its allies, thereby promoting resilient supply chains; and (3) protective duties against foreign adversaries such as China are prudent and necessary to safeguard the domestic unmanned aircraft industry.

This section imposes escalating additional ad valorem duties on unmanned aircraft (provided for in HTS subheadings 8806.10.00, 8806.21.00, 8806.22.00, 8806.23.00, 8806.24.00, 8806.29.00, 8806.91.00, 8806.92.00, 8806.93.00, 8806.94.00, or 8806.99.00) and parts thereof (provided for in HTS subheadings 8807.10.00, 8807.20.00, or 8807.30.00) imported from China, effective 30 days after enactment and in addition to all existing duties (including antidumping and countervailing duties): (1) 30% through one year after enactment; (2) 35% through two years after enactment; (3) 40% through three years after enactment; (4) 45% through four years after enactment; and (5) $100 per unit plus 50% thereafter. (Thus, the duties override any temporary exemptions or reductions.)

This section prohibits entry into the U.S. customs territory of unmanned aircraft classified under Harmonized Tariff Schedule (HTS) heading 8806 and parts therefor under heading 8807 unless accompanied by U.S. Customs and Border Protection (CBP)-required certification verifying that the aircraft contains none of specified critical components (flight controller, radio, data transmission device, camera, gimbal, permanent magnets including neodymium iron boron magnets, ground control system, operating software, network connectivity hardware, or data storage) manufactured in China and that parts were not manufactured in China, with CBP confirming documentation veracity. This section exempts unmanned aircraft previously authorized by the Federal Aviation Administration (FAA) before January 1, 2026, for operations under 14 C.F.R. part 135 or included in an air carrier exemption under 49 U.S.C. 44807 (i.e., the special authority for risk-based approval of low-risk unmanned aircraft system operations notwithstanding standard certification requirements), provided they are not wholly manufactured by a covered foreign entity or in a foreign adversary country; requires FAA to provide CBP a certified list of such aircraft by that date. The prohibition applies to unmanned aircraft on and after January 1, 2028, and to parts on and after January 1, 2031.

This section establishes the Secure Unmanned Aircraft Systems Trust Fund in the Treasury, funded by quarterly transfers from the general fund equivalent to duties collected under HTS headings 9903.87.01 and 9903.87.02 (per U.S. note 31 to subchapter III of chapter 99) beginning in FY2026 and each fiscal year thereafter, with amounts invested in U.S. obligations and available without further appropriation for a grant program during the year transferred or credited and the following fiscal year. The Secretary of the Treasury must report annually to Congress on Trust Fund disbursements, beginning one year after enactment. This section further requires the Secretary of Homeland Security, beginning not later than one year after enactment, to establish a grant program using Trust Fund amounts that provides grants (1) to first responders, farmers and ranchers, and critical infrastructure providers to purchase or lease secure unmanned aircraft systems, support their operations, and enhance program management; and (2) to U.S. entities manufacturing unmanned aircraft systems components for workforce development and increased manufacturing capacity. In implementing the program, the Secretary must consult with the Secretary of Agriculture on criteria for farmers and ranchers and with the Secretary of Transportation on critical infrastructure providers. Of Trust Fund amounts in any fiscal year, grant priorities are (A) not more than 60% for first responders, (B) not more than 20% for farmers and ranchers, (C) not more than 20% for critical infrastructure providers, and (D) not more than 10% for component manufacturers. Applications must be approved or denied within 90 days on a first-come, first-served basis (extendable by 45 days if needed due to volume), with denials not precluding resubmission; the Secretary must report annually to Congress on program implementation, beginning one year after establishment.

This section defines seven terms for purposes of the Act: (1) air carrier, as given in 49 U.S.C. §40102; (2) covered foreign entity, meaning a foreign entity on the Federal Government’s Consolidated Screening List, domiciled in or subject to influence or control by the People’s Republic of China, identified as a Chinese military company under specified authorities, on the Non-SDN Chinese Military-Industrial Complex Companies List, on lists under the Uyghur Forced Labor Prevention Act, or as defined in the American Security Drone Act of 2023; (3) critical infrastructure, as given in the Critical Infrastructures Protection Act of 2001 (42 U.S.C. §5195c); (4) customs territory of the United States, as given in general note 2 of the Harmonized Tariff Schedule; (5) first responder, as given in the Omnibus Crime Control and Safe Streets Act of 1968 (34 U.S.C. §10705); (6) foreign adversary country, meaning a covered nation as defined in 10 U.S.C. §4872(f); and (7) secure unmanned aircraft system, meaning an unmanned aircraft system (as defined in 49 U.S.C. §44801) that is not manufactured or assembled by a covered foreign entity or in a foreign adversary country.