1. manufactured in a covered foreign country, or by a company based in a covered foreign country; or

2. that use flight controllers, radios, data transmission devices, cameras, gimbals, ground control systems, or operating software manufactured in a covered foreign country or by a company based in a covered foreign country.

That law, Section 848 of the Fiscal Year 2020 National Defense Authorization Act (NDAA), defined a “covered foreign country” to mean China. In 2022, Congress updated the law to include Russia, Iran and North Korea. Recently, Congress extended the law even further to apply to the private sector. 

Beginning in October 2024, the American Security Drone Act (FY2024) is  added as an addendum to National Defense Authorization Act (NDAA). This legislation bans federal agencies from buying and operating Chinese made drones and; Prohibits federal departments and agencies from procuring certain foreign commercial off-the-shelf drones or covered unmanned aircraft systems manufactured or assembled in countries identified as national security threats, and provides a timeline to end current use of these drones.

The law prohibits the use of federal funds awarded through certain contracts, grants, or cooperative agreements to state or local governments from being used to purchase foreign commercial off-the-shelf drones or covered unmanned aircraft systems manufactured or assembled in a country identified as a national security threat.

NDAA compliance is primarily focused on the supply chain–where the drone and its key components are made, and where the manufacturer is based. Importantly, it is not a rule that the drone must be 100% free of all parts from a covered foreign country, only those specifically listed.