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Pentagon Authorizes Field Commanders to Accelerate Drone Procurement

The memos scrap legacy rules to let commanders buy, test expendable drones independently, prompting a surge in drone stocks as new testing ranges begin construction.

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Defense Secretary Pete Hegseth attends a meeting with Israeli Prime Minister Benjamin Netanyahu, not shown, at the Pentagon, Wednesday, July 9, 2025, in Washington.
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Overview

  • Hegseth’s public memorandums reclassify small Group 1 and 2 drones as consumable assets, removing them from legacy tracking and streamlining acquisition for unit commanders.
  • Colonels and Navy captains can now independently procure and field commercial, prototype and 3D-printed UAS, bypassing traditional Pentagon approvals.
  • The directives require collaboration with the FAA to lift range and spectrum restrictions and establish three national test sites within 90 days for live-fire, combined-arms and swarm exercises.
  • The Pentagon is developing an AI-powered “Blue List” catalog of approved drone components and vendors to be operational by 2026.
  • Shares of drone makers such as Red Cat Holdings and AeroVironment jumped up to 23%, and the Pentagon has broken ground on test ranges while rolling out digital procurement tools.