FCC Updates Covered List Based on DoW National Security Determination

Bottom Line Up Front

After banning all new foreign-produced uncrewed aircraft systems (UAS)¹ and UAS critical components² in a December 2025 Public Notice, the Federal Communications Commission (FCC) recently updated its Covered List following a Department of War (DoW) national security determination (NSD) that certain UAS and UAS critical components do not currently pose unacceptable risks to national security.

As we previously reported, in response to an NSD made by an executive branch interagency body, the FCC announced a major expansion of its Covered List on December 22, 2025, restricting UAS and UAS critical components produced in a foreign country absent a specific determination made by the DoW or the Department of Homeland Security (DHS) that a foreign-produced UAS, class of UAS, or UAS critical components do not pose an unacceptable risk to the national security of the United States and to the safety and security of U.S. persons.

On January 7, 2026, the DoW issued an NSD on the threat certain UAS and UAS critical components pose, effectively creating two categorical exemptions.

The DoW’s National Security Determination

The DoW’s NSD carved out two categories of foreign-produced UAS and UAS critical components it determined do not currently pose an unacceptable risk to national security: UAS and UAS critical components included on the Blue UAS List; and UAS and UAS critical components that meet the Buy American Act’s definition of “domestic end product.” Both exemptions are valid until January 1, 2027, and demonstrate the DoW’s commitment to upholding the strong restrictions on foreign-produced UAS and UAS critical components while preserving pathways to trusted systems and domestic production.

The DoW’s first exemption applies to UAS and UAS critical components included on the Defense Contract Management Agency’s Blue UAS List. The Blue UAS List identifies UAS and UAS components that have gone through rigorous cyber and hardware assessments; are deemed compliant with current US law, regulations, and policy; and are validated as cyber secure. The DoW determined that given the “rigorous security testing” done on UAS and UAS components on the Blue UAS List, these UAS and UAS components do not currently present unacceptable risks to the national security of the United States or to the safety and security of US persons and therefore should not be included on FCC’s Covered List.

While the DoW determined that UAS and UAS components included on the Blue UAS List do not currently pose immediate national security risks, the NSD notes that “it is a national security imperative to have an independent, robust, and resilient domestic drone industrial base and supply chain” as emphasized in Executive Order 14307, “Unleashing American Drone Dominance.”³ As such, the NSD will terminate on January 1, 2027, at which time, it will be reassessed to “determine if the import of Blue listed UAS and UAS critical components produced in a foreign country threatens the resiliency of [the] domestic drone industrial base.”

DoW’s second exemption applies to UAS and UAS critical components that qualify as “domestic end products” under the Buy American Act.⁴ In accordance with the Buy American Act, UAS or UAS critical components must meet a two-part test to meet the definition of a “domestic end product”: the UAS or UAS critical components must be manufactured in the United States and the cost of domestic components must exceed 65% of the total cost of the finished product.⁵ The DoW determined that until January 1, 2027, UAS and UAS critical components that meet the domestic end product standard do not pose unacceptable risks to the national security of the United States and to the safety and security of US persons.

In response, the FCC found that the DoW’s NSD constitutes a specific determination under section 2 of the Secure and Trusted Communications Network Act of 2019,⁶ requiring the FCC to update its Covered List to exclude the UAS and UAS critical components included on the Blue UAS List and those that meet the Buy American definition of domestic end product until January 1, 2027.

FCC Covered List FAQs

In addition to updating its Covered List to remove the UAS and UAS critical components exempted under the DoW’s NSD, the FCC compiled a list of frequently asked questions (FAQs) on its recent updates to the Covered List. The FAQs address several questions raised since the December 2025 Public Notice, including definitions of key terms, applicability to non-aerial drones and batteries, and the Covered List’s relationship to other federal agencies’ rules.

Conditional Approval Process

The FCC also issued guidance on the process for organizations to seek individual conditional approval from the DoW or DHS for UAS and UAS critical components not otherwise exempt. To be considered for a conditional approval, companies must be prepared to submit information related to their corporate structure, a manufacturing and supply chain disclosure, and a US manufacturing and onshoring plan. If granted, conditional approvals are valid for up to 12 months.

Key Takeaways for Companies in the Drone Manufacturing Space

• While the DoW’s NSD carves out exceptions for military use, the FCC’s updated Covered List does not exempt UAS or UAS critical components for commercial use. 
• The DoW will revisit its NSD, which is valid through January 1, 2027. 
• Any entity not covered by the DoW’s NSD may seek conditional approval, which if granted, would apply for up to 12 months.

Goodwin’s Government Contracts & Grants team has significant experience counseling clients engaged in the manufacture and sale of commercial and government UAS. They also have extensive expertise in helping clients navigate the rapidly changing laws and regulations that impact these activities. Please contact the authors of this alert or the Goodwin lawyer who you work with regularly if you have questions.

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1. ^[1] The term “UAS” means “an Uncrewed Aircraft and its associated elements (including an uncrewed aircraft station, communication links, and the components not on board the UA that control the UA) that are required for the safe and efficient operation of the UA in the airspace of the United States.” (The Public Notice) ↩

2. ^[2] “The term ‘UAS critical components’ includes but is not limited to the following UAS components and any associated software”: (1) data transmission devices; (2) communications systems; (3) flight controllers; (4) ground control stations and UAS controllers; (5) navigation systems; (6) sensors and cameras; (7) batteries and battery management systems; and (8) motors. (Ibid) ↩

3. ^[3] “Unleashing American Drone Dominance,” The White House, June 6, 2025, https://www.whitehouse.gov/presidential-actions/2025/06/unleashing-american-drone-dominance/. ↩

4. ^[4] 41 U.S.C. §§ 8301-8305. The Buy American Act requires federal agencies to procure domestic materials and products. ↩

5. ^[5] 48 CFR § 25.101(a). ↩

6. ^[6] 47 U.S.C. § 1601. ↩

This informational piece, which may be considered advertising under the ethical rules of certain jurisdictions, is provided on the understanding that it does not constitute the rendering of legal advice or other professional advice by Goodwin or its lawyers. Prior results do not guarantee similar outcomes.