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The Department of Defense has taken major steps to speed up the purchase of uncrewed systems. Defense Secretary Pete Hegseth announced sweeping changes on July 10, 2025, that will transform how the military buys and uses drones.

New Policy Removes Red Tape

Secretary Hegseth released a memo titled “Unleashing U.S. Military Drone Dominance” that eliminates many rules that slowed down drone production. The policy removes two key restrictions: a 2022 memo about requirements for blue small unmanned aircraft systems and a 2021 memo about drone operation procedures.

“The department’s bureaucratic gloves are coming off,” Hegseth said when announcing the changes at the Pentagon.

Fast-Track Timeline for Military Branches

The new directive sets strict deadlines for military services:

30 Days: The Office of Strategic Capital and Department of Government Efficiency must propose ways to help domestic drone companies, including advance purchase agreements and direct loans.

60 Days: Each military service must review programs that would work better or cost less if replaced with drones.

90 Days: Military departments must create at least three national drone training ranges with different types of terrain, including areas over water.

September 1, 2025: All military branches must establish special units designed to quickly scale up small drone use across the Joint Force by 2026.

End of Fiscal Year 2026: Every squad must have low-cost, throwaway drones. Units in the Indo-Pacific region get priority.

Commanders Get More Power

One of the biggest changes gives military commanders more freedom to buy drones. Officers at the colonel level can now authorize their people to operate drones and buy, test, and train with small uncrewed aircraft systems. This is a major shift from the old system where higher-level approval was needed.

Army Already Moving Forward

The Army started taking action even before the new policy. On July 8, 2025, the Army’s Program Executive Office Aviation asked companies for commercially available low-cost small drone systems. The Army wants to buy thousands of drones right away and plans to purchase up to 10,000 small drones by September 2026 for less than $2,000 each.

Pentagon’s Replicator Program On Track

The Defense Innovation Unit confirmed that the Pentagon’s Replicator program is “on track” to field thousands of low-cost, throwaway drones by August 2025. The program has already announced second-round selections and software integration awards.

The Defense Innovation Unit has also launched several new initiatives:

Project G.I. Challenge: A $20 million competition started in June 2025 to find and integrate new drone platforms
Artemis Project: Four companies received contracts in March 2025 for long-range, one-way platforms that can work in electronic warfare environments

Industry Responds Positively

The announcement immediately affected drone company stock prices. Kratos Defense & Security Solutions saw its stock rise 7.6%, Red Cat Holdings increased 17%, and Unusual Machines climbed 15%.

The Association for Uncrewed Vehicle Systems International (AUVSI) strongly supported the new DoD actions, calling it “a win for the warfighter, for taxpayers, and for the U.S. industrial base”.

Learning from Ukraine

The push to accelerate drone acquisition comes from lessons learned in the Ukraine conflict, where drones account for “most of this year’s casualties”. The directive notes that “our adversaries collectively produce millions of cheap drones each year” while the U.S. military has been “mired in bureaucratic red tape”.

Building on Presidential Direction

These Defense Department actions build on President Trump’s June 6, 2025 Executive Order 14307, “Unleashing American Drone Dominance,” which focused on strengthening the domestic drone industry and making drone operations more normal.

What This Means

The changes represent the most significant recent actions by the Department of Defense to accelerate uncrewed systems acquisition. With concrete timelines, policy changes, and new procurement authorities all put in place within the past week, the military is positioned to dramatically increase its drone capabilities.

The focus on low-cost, throwaway drones reflects a shift in military thinking. Instead of relying on expensive, high-tech systems, the military is moving toward using large numbers of cheaper drones that can overwhelm enemy defenses.

For drone companies, these changes open up major opportunities. The military’s commitment to buying thousands of drones creates a massive market for manufacturers who can produce systems that meet the military’s needs for simple, effective, and affordable uncrewed aircraft.

The transformation also signals a broader change in how the military operates. By giving lower-level commanders more authority to buy and use drones, the Pentagon is recognizing that these systems have become essential tools for modern warfare.

As the military moves forward with these changes, the drone industry is likely to see unprecedented growth and innovation. The combination of urgent military needs, streamlined procurement processes, and strong industry support creates conditions for rapid advancement in drone technology and capabilities.