Peters Presses to Ensure Funding Will Not Go Towards Drone Manufacturers – Including Those with Ties to the Chinese Government – That May Pose a Threat to U.S. National Security

DETROIT, MI – U.S. Senator Gary Peters (MI) led his colleagues in a bipartisan effort to ensure federal funding through the bipartisan infrastructure law will not go towards drones manufactured by foreign companies – including those with ties to the Chinese government – that present a security risk to the United States and our critical infrastructure. In the letter, Peters and his colleagues urged the U.S. Department of Transportation (DOT) to prevent Strengthening Mobility and Revolutionizing Transportation (SMART) grants from being used to buy drones from foreign manufacturers that are subject to the influence or control of governments that threaten national security. The SMART grant program is a new initiative authorized by the bipartisan Infrastructure Investment and Jobs Act that will provide competitive grants to communities to deploy innovative transportation technologies, such as drones that inspect infrastructure or monitor traffic. The risk from foreign-made drones has been the subject of numerous reports, including a recent Washington Post article cited in the letter, which revealed that DJI has “obscured its Chinese government funding while claiming that Beijing had not invested in the firm. 

“As you know, the IIJA created the SMART grant program to enable state, local, and tribal governments to leverage innovative technology, such as drones, to support transportation safety and efficiency,” wrote Peters and his colleagues. “But the risks associated with drones made by companies subject to the laws of the People’s Republic of China, for example, are clear. That is why Congress has acted to address them.” 

“We urge USDOT to take action. In implementing the SMART grant program, the Department should prevent funding from being used on drones manufactured by companies that pose a security risk,” Peters and his colleagues continued. “This is essential to advancing our national security objectives and protecting our country’s infrastructure.” 

The text of the letter is copied below and available here. 

Dear Secretary Buttigieg, 

As the U.S. Department of Transportation (USDOT) works to implement the bipartisan Infrastructure Investment and Jobs Act (IIJA), we request that you to take action to protect U.S. taxpayer dollars and the security of U.S. infrastructure. Specifically, in implementing the Strengthening Mobility and Revolutionizing Transportation (SMART) grant program, we urge you to prohibit these grants from being used to fund uncrewed aircraft systems (“drones”) manufactured by companies that are subject to the influence or control of governments-including the People’s Republic of China (PRC)-that present a security risk to the United States and our critical infrastructure. 

As you know, the IIJA created the SMART grant program to enable state, local and tribal governments to leverage innovative technology, such as drones, to support transportation safety and efficiency. But the risks associated with drones made by companies subject to the laws of the PRC, for example, are clear. That is why Congress has acted to address them. 

Section 848 of the National Defense Authorization Act (NDAA) for Fiscal Year 2020 prohibited the Department of Defense (DOD) from purchasing or operating drones made in the PRC.  More recently, the bipartisan, Senate-passed U.S. Innovation and Competition Act (USICA) included provisions based on the American Security Drone Act of 2021 extending that prohibition to all federal agencies, including USDOT.  USICA would also prohibit the use of federal grant money to purchase drones made by Chinese entities and other manufacturers that present a security risk, starting two years following enactment. That timeline by no means limits USDOT’s inherent authority to impose reasonable constraints on federal taxpayer dollars in the interim. 

The Administration has also highlighted these risks. In July, DOD issued a statement concluding that “systems produced by Da Jiang Innovations (DJI)”-the world’s largest drone manufacturer which has long dominated the U.S. and global markets-“pose potential threats to national security.”  We also understand that the Administration is in the process of implementing Executive Order 13981,  which makes it U.S. policy “to prevent the use of taxpayer dollars to procure UAS that present unacceptable risks and are manufactured by, or contain software or critical electronic components from, foreign adversaries, and to encourage the use of domestically produced UAS.” Numerous news reports have also highlighted related concerns, including a recent Washington Post article, which revealed that DJI has “obscured its Chinese government funding while claiming that Beijing had not invested in the firm.” 

We urge USDOT to take action. In implementing the SMART grant program, the Department should prevent funding from being used on drones manufactured by companies that pose a security risk. This is essential to advancing our national security objectives and protecting our country’s infrastructure. 

Thank you for considering our request. 

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