Key Takeaways
- •The Department of Defense launched the "Drone Dominance" program, committing $1.1 billion to procure 300,000 small drones by 2027 to counter China's market dominance and rebuild domestic manufacturing.
- •Travis Metz (Drone Dominance Program Manager, U.S. Department of Defense) testified that the program uses competitive "gauntlets" to drive unit costs from $40,000 down to under $2,000.
- •Sen. Shaheen (D-NH) challenged the witnesses on the lack of urgency, noting that Ukrainian forces iterate drone technology every two weeks while the Pentagon operates on six-month cycles.
- •Sen. Wicker (R-MS) and Sen. Reed (D-RI) agreed that the United States must eliminate Chinese subcomponents from the drone supply chain to prevent software vulnerabilities and predatory pricing.
- •This initiative signals a shift toward mass-produced autonomous systems, requiring the Department to establish new training hubs and address ethical concerns raised by Sen. Kelly (D-AZ) regarding AI-targeting.
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Hearing Analysis
Overview
The Senate Armed Services Committee held a hearing on March 5, 2026, to examine the state of the American small drone industrial base and the Department of Defense (DOD) efforts to achieve "drone dominance." Chairman Roger F. Wicker (R-MS) and Ranking Member Jack Reed (D-RI) convened the session to address the strategic lag in U.S. production of Group 1 drones—unmanned systems weighing less than 20 pounds—which have become decisive on modern battlefields like Ukraine. The hearing focused on the "Drone Dominance" program, a rapid acquisition initiative designed to bypass traditional bureaucratic hurdles and rebuild a domestic supply chain independent of the People's Republic of China.
Key Testimony
The committee heard testimony from three key DOD officials: Owen O. West, Senior Advisor for Drone Dominance; Travis Metz, Drone Dominance Program Manager; and Major General Steven M. Marks, Director of the Defense Autonomous Warfare Group (DAWG). Mr. West emphasized that the U.S. is currently years behind China, which controls over 90 percent of the global non-military small drone market through state subsidies and predatory pricing. He noted that American drones often cost five to 25 times more than Chinese alternatives. Mr. Metz detailed the department's new "Gauntlet" evaluation process at Fort Benning, where 25 vendors competed in live-fire and operational tests scored by military operators. This process resulted in immediate orders for 30,000 small one-way attack drones, with a broader goal of procuring 300,000 units by next year using $1.1 billion in reconciliation funding. Major General Marks described the role of the DAWG in synchronizing operational demand with technical innovation, specifically focusing on larger one-way attack drones and autonomous maritime systems.
Policy Proposals
Policy discussions centered on several legislative and executive actions. Chairman Wicker highlighted Section 1709 of the FY 25 NDAA, championed by Sen. Rick Scott (R-FL), which banned leading Chinese drone manufacturers like DJI and Autel Robotics from the U.S. market. Witnesses also discussed the Small UAS Industrial Base Working Group established by Section 914 of the FY 26 NDAA, which is tasked with providing recommendations to strengthen the industry by April 2026. The "Drone Dominance" program itself stems from a June 2025 Executive Order and a subsequent July 2025 memorandum from Secretary of Defense Pete Hegseth, aimed at "unleashing" American production.
Industry Impact
The industry impact of these policies is significant for domestic manufacturers and component suppliers. The DOD is shifting from "exquisite," expensive systems to "consumable" drones. This shift is intended to provide a steady demand signal to the private sector, allowing companies to secure capital and scale production. For example, ePropelled, a New Hampshire-based manufacturer of brushless motors, was cited as a critical domestic supplier that could benefit from direct lending through the Office of Strategic Capital (OSC) or the Industrial Base Analysis and Sustainment (IBAS) program.
Overview
The hearing identified several organizations in specific contexts. The People's Republic of China was characterized as a strategic adversary that has weaponized its market dominance. Ukraine was frequently cited as the primary source of battlefield data, with Sen. Jeanne Shaheen (D-NH) and Sen. Richard Blumenthal (D-CT) expressing concern that the U.S. is not iterating technology as quickly as Ukrainian forces. The Defense Autonomous Warfare Group (DAWG) was praised for its agility in developing offensive autonomous capabilities, while the Joint Interagency Task Force 401 (JIATF 401) was identified as the lead for counter-UAS strategies. The Federal Communications Commission (FCC) was noted for its role in implementing bans on Chinese technology. Private entities like GoPro were mentioned regarding competition with Chinese camera manufacturers, and Anthropic was referenced in the context of AI safety frameworks.
Organizations & Entities
Partisan dynamics were largely unified regarding the threat posed by China, though some friction emerged over the scale of the U.S. response. Sen. Blumenthal (D-CT) and Sen. Shaheen (D-NH) questioned whether the $1.1 billion investment was sufficient, comparing it unfavorably to the multiples spent by Ukraine. Sen. Mark Kelly (D-AZ) raised critical concerns about the lack of a statutory framework for Artificial Intelligence (AI) in lethal operations, noting that DOD Directive 3000.09 lacks clarity on "human-in-the-loop" requirements for autonomous targeting.
Notable exchanges included Sen. Angus S. King (I-ME) questioning the price disparity between American and Chinese drones. Mr. Metz admitted the U.S. is currently paying $5,000 per unit for drones that China produces for $500, though he expressed optimism that prices would drop below $2,000 as production scales. Sen. Mike Rounds (R-SD) pushed for more modular drone designs to counter rapid electronic warfare advancements, leading to a discussion on the use of fiber-optic tethers to bypass radio frequency jamming.
Next Steps
Next steps include the second "Gauntlet" competition scheduled for August 2026, which will focus on operating in GPS-denied environments and integrating counter-UAS capabilities. The Small UAS Industrial Base Working Group is scheduled to brief the Deputy Secretary of War by the end of March 2026, with a formal report due to Congress by April 1, 2026.
Transcript
...to examine both the state of our small drone industrial base and the path to American leadership in drone production. This issue has profound implications for both our warfighting readiness and our future prosperity. I'm not really sure Americans understand that fully yet. It's also part of our broader effort to rebuild the American arsenal. We're pleased to welcome three witnesses who are leading this effort with the department. Mr. Owen West, Senior Advisor for Drone Dominance, Mr. Travis Metz, the Drone Dominance Program Manager, and Major General Steven Marks, who is the Director of the Defense Autonomous Warfare Group. The war in Ukraine has forever changed the character of modern warfare and demonstrated the growing importance of small unmanned systems, what we colloquially call drones. In particular, so-called Group 1 drones are now central to reconnaissance, targeting, and strike missions. These drones weigh less than 20 pounds and are often purchased at low cost and in very large numbers. Both the American commercial drone industry and the Pentagon are years behind the curve in producing and employing drones. Catching up is as necessary as it is difficult, but I believe we're finally on the cusp of charting a future for American drone dominance. To understand why we're so far behind, we must first acknowledge how we arrived here today. The Chinese Communist Party correctly predicted that small drones would be a crucial technology for both military and commercial use, particularly in agriculture and other large-scale industrial efforts. China used state subsidies in the tens of billions of dollars, predatory pricing practices, and state-directed control of key supply chains to capture more than 90 percent of the global non-military small drone market. American drone companies were essentially forced out of the global market. Diminished commercial demand made American drones far more expensive than Chinese drones, anywhere from five to 25 times more expensive. This poses a difficult problem for U.S. military units and U.S. industries who require cheap drones but cannot buy from Chinese companies for fear of supply chain or software vulnerabilities. As we've seen in the critical minerals and rare earths industry, fighting back against 21st century economic warfare like this requires creative solutions and thoughtful industrial policy. The United States is poised today to enact both. Last year's defense reconciliation law set aside $2.5 billion to procure a range of small drones. Just over $1 billion of that sum will be used specifically to purchase very small Group 1 first-person view drones. Our witnesses will discuss the competition process for this investment. At least it is hoped that we would. I hope they'll also discuss our strategic use of loans to help industry rebuild supply chains quickly. We expect this will deliver 300,000 drones by next year. This steady demand signal, which must be continued for quite a few years, will serve as the anchor for America and her allies as we constitute our supply chains. So we'll see what our witnesses say about that. Investment is just the first step. The free world must band together to stop rewarding China's predatory practices in the small drone industry, and they should have been no surprise. Congress has taken important steps to address these concerns. The key example is Section 1709 of the FY25 NDAA, championed by Senator Rick Scott. This provision essentially banned the leading Chinese state-sponsored drone companies from selling in the United States. The Trump administration, led by FCC Chair Brendan Carr, implemented this law just before Christmas last year. Success will require sustained attention to the supply chain across its full range of components. We took action to address this in fiscal year 2026 NDAA. We directed the Pentagon to establish a working group to assess our small drone industrial base capacity. That group will then be asked to develop recommendations to strengthen the industry. I anticipate there will be work across the country to support this effort, from new drone designs coming from Oklahoma and California to component manufacturing in New Hampshire and Florida. I welcome Major General Marks' testimony as the Director of the Defense Autonomous Warfare Group, or the DAWG, which is the correct pronunciation of the word in Mississippi, DAWG. While the drone dominance efforts focus on smaller Group 1 first-person view drones, the DAWG will lead on larger one-way attack drones and small unmanned boats. Just a few days ago, America used one-way attack drones for the first time in combat in Ar-Rayyan with Task Force Scorpion firing the Locus drone, a reverse-engineered Shahed-136. I welcome the General's comments on what he plans to do to jumpstart these new areas of weapons with the significant funding we provided for the DAWG in reconciliation. It is an absolute imperative that we make a game-changing investment in the next few months on low-cost munitions to complement our exquisite munitions. The American drone industry is essentially starting from near zero, but today we are on a path to a strong drone industry that can support American military and commercial demand thanks to a steady demand signal, thoughtful industrial policy, and close coordination with our allies and partners. But we are looking to this panel today for leadership and insight. I look forward to hearing from our witnesses about the department's plan to support this vital work, and I also look forward to hearing from my colleague and friend, Ranking Member Reed, who is recognized.
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