Robert Rahm |
October 13, 2026 
By Robert Rahm October 13, 2026
The Federal Highway Administration has issued Policy No. FHWA-HIF-26-011 and a companion FAQ document clarifying how the American Security Drone Act of 2023 (Section 1825 of the FY 2024 NDAA) applies to federal-aid highway projects. The guidance is effective immediately and implements statutory requirements that have been binding since December 22, 2025, together with OMB Memorandum M-26-02.
The core rule is straightforward: federal funds may not be used to procure or operate a covered unmanned aircraft system in connection with a federal-aid project. More importantly for contractors, the same prohibition covers any UAS operation performed “in connection with” FHWA-funded work—inspections, progress documentation, monitoring, or verification—regardless of whether the specific flight is paid with federal, state, or private dollars.
What Counts as a Covered UAS
A covered UAS is one manufactured or assembled by a covered foreign entity. Covered foreign entities are those listed by the Federal Acquisition Security Council on SAM.gov and include entities domiciled in or subject to the control of the People’s Republic of China, entities on the Consolidated Screening List, and their subsidiaries or affiliates. The definition reaches the aircraft and its associated elements, including communication links, flight controllers, cameras, ground control stations, navigation systems, sensors, batteries, battery management systems, and motors.
In practice this captures the majority of systems still in widespread commercial use that originate from Chinese manufacturers. Systems on the Department of Defense’s Blue UAS Cleared List or AUVSI’s Green UAS Cleared List are treated as safe harbors, but recipients must still verify compliance through vendor certifications and supply-chain documentation.
Scope of the “In Connection With” Test
The FAQ is explicit: state funds cannot be used to operate a covered UAS on a federal-aid project. The prohibition attaches to the project itself, not merely to the line item that pays for the flight. Activities that support, inspect, document, monitor, or verify performance of FHWA-funded work are covered. Purely state-funded research flights or standalone state bridge inspections that have no connection to a specific FHWA-funded project agreement fall outside the guidance, provided they do not support any federally assisted activity.
There is no grandfathering and no transition period. ARTBA noted that industry requests for additional time to replace existing fleets (orders for compliant domestic systems can take 180 days or more) were not granted. If a prohibited drone is used—even unintentionally—the recipient must immediately notify the appropriate FHWA Division Office and submit a corrective action plan that may include divestiture, replacement, or other remedial measures acceptable to the Division.
Documentation and Enforcement Expectations
Recipients and subrecipients must obtain and retain certifications that UAS systems, components, and services do not involve covered foreign entities. Contracts should include supply-chain, software-provenance, and audit provisions. Records must be kept for three years from the final expenditure report and made available to FHWA upon request. Division Offices are expected to incorporate UAS compliance into their risk-based oversight of State DOTs.
Exemptions contained in subsections (b), (c), and (d) of Section 1825 of the FY 2024 NDAA are not available to FHWA funding recipients. Requests for exceptions are described as highly disfavored and handled only on a case-by-case basis.
Practical Steps for Part 107 Pilots and Contractors
If you or your firm perform drone work on roads, bridges, or other transportation assets that receive federal-aid highway funds:
- Confirm whether the project is federal-aid. Check the contract or project agreement.
- Inventory the aircraft you intend to use. If it is not on the Blue UAS or Green UAS Cleared List, obtain written vendor certification of non-covered status or switch platforms.
- Keep the certification, serial numbers, and flight logs with the project file.
- Do not operate a covered system on the job site, even if you are being paid separately by the state or the contractor with non-federal money.
- If a non-compliant flight has already occurred, notify the FHWA Division Office immediately and prepare a corrective action plan.
The policy does not change FAA operating rules. A Part 107 certificate, Remote ID compliance, airspace authorizations, and all other 14 CFR Part 107 requirements remain fully in force. The FHWA restriction is an additional procurement and project-compliance overlay.
Official documents:
Policy guidance: https://www.fhwa.dot.gov/uas/resources/UAS_policy_guidance.pdf
FAQs: https://www.fhwa.dot.gov/uas/resources/UAS_Policy_FAQs.pdf
ARTBA summary: https://www.artba.org/news/fhwa-reiterates-new-drone-restrictions/