The new Department of Defense (DoD) memo on UAVs, titled “Unleashing U.S. Military Drone Dominance” and signed by Defense Secretary Pete Hegseth on July 10, 2025, marks a sweeping overhaul of U.S. military drone policy. The directive is a response to both rapid global advances in military drone use, especially highlighted by the war in Ukraine, and an executive order from the White House aimed at accelerating American drone innovation and production.  

The memo itself is short and sweet. But several media outlets (including TWZ and Defense One) are reporting on more details. Taken together we know that DoD:

• Will begin to treat small drones as consumables: Group 1 and Group 2 drones (up to 55 pounds) will now be treated like ammunition rather than traditional aircraft. This means they can be rapidly procured, deployed, and replaced, much like munitions, removing many bureaucratic hurdles that previously slowed acquisition and fielding.
• Pushes authority to lower levels: O-6 level commanders (colonels and Navy captains) are now empowered to directly procure, operate, and adapt small drones for their units, bypassing much of the previous centralized approval process. The goal is to equip combat units with drones and enable more low-cost purchases of drones.
• Rescinds restrictive policies: The memo overturns previous DoD policies, including the 2022 “Exception to Policy Requirement for Blue Small Unmanned Aircraft Systems” and the 2021 guidance implementing Section 848 of the 2020 NDAA, both of which limited procurement and use of drones due to concerns over foreign components and acquisition red tape.
• Accelerates U.S. drone manufacturing: Hundreds of American-made drone products will be approved for purchase, with a strong “Buy American” preference. The memo calls for leveraging private capital and expanding domestic production capacity, aiming to stabilize demand and support the U.S. drone industrial base.
• Streamlines standards and training: Group 1 and 2 drones are exempted from certain NATO interoperability standards (like STANAG 4586), reducing complexity and cost. The memo directs the establishment of new drone training ranges and mandates that by the end of 2026, every squad will have access to low-cost, expendable drones, prioritizing Indo-Pacific units.
• Mandates rapid innovation and fielding: The services must establish dedicated drone units and program offices focused on accelerating the adoption of small UAS. Within 60 days, each branch must review programs to identify where drones can replace or augment existing capabilities. By September 2025, experimental formations will be created to rapidly scale drone use across the force.
• Supports the warfighter and industrial base: The memo is designed to align acquisition with operational needs, empowering frontline units and sending a clear demand signal to industry, thereby encouraging investment in U.S. drone innovation and production.

Business and National Security Impact:

• Expect a Significant demand surge for U.S.-made drones and components, creating new opportunities for defense and dual-use drone manufacturers.
• Expect to see faster procurement cycles and decentralized purchasing, reducing barriers for innovative small and mid-sized vendors to enter the defense market.
• Look for a strengthened U.S. industrial base and reduced reliance on foreign-made systems, aligning with broader national security and supply chain resilience goals.

The memo represents a fundamental shift in how the U.S. military acquires, fields, and employs small drones, aiming to restore American leadership in drone warfare and innovation by slashing red tape and empowering warfighters at the tactical edge.