Following policy shifts in 2025, the American Road & Transportation Builders Association briefed members on new Federal Highway Administration guidance. It restricts foreign-made unmanned aircraft systems on federal-aid highway projects. The updated rules clarify that federal funds are prohibited for the procurement, maintenance or operation of these devices, which are primarily manufactured in China.
Restrictions are in full effect following directives from the Office of Management and Budget and the American Security Drone Act of 2023. The policy dictates that covered drones cannot be used on federal-aid highway projects, regardless of whether those devices were purchased or operated using non-federal funds. The agency has provided no transition period for the replacement of existing equipment.
Project participants that use a prohibited drone, even if the action is unintentional, must report the incident to the agency immediately. Furthermore, these recipients are required to submit a corrective action plan to address the violation. This plan may involve the disposal or replacement of the noncompliant equipment to ensure ongoing compliance.
Industry advocates had previously requested a grandfathering provision for equipment already in service. Stakeholders also raised concerns about acquiring compliant replacements, noting that domestic drone orders take a minimum of 180 days for completion. However, the agency stated it could not accommodate these requests, citing statutory requirements that mandate an immediate halt to prohibited activities.
ARTBA officials have been in contact with both the White House and agency representatives throughout the year to discuss potential project disruptions. The association continues to encourage its members to provide feedback regarding implementation hurdles, procurement delays and other challenges faced by state transportation agencies and contractors. For insurance and risk management professionals, these restrictions represent a significant compliance requirement. Firms must audit their current inventory and operational practices on federal projects to ensure compliance. Because there is no grace period, contractors and agencies face the burden of an immediate transition.
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