On October 16, the Federal Emergency Management Agency (FEMA) announced that it is making $250 million available to states and territories through a second funding opportunity under its C-UAS Grant Program. The program was established under the Working Families Tax Cut Act (also known as the One Big Beautiful Bill Act), which was signed into law in July 2025 and directed DHS to provide $500 million in federal funding over two fiscal years to enhance state and local capabilities to combat unlawful use of UAS. 

This follows last year’s initial funding opportunity through the program, in which $250 million was awarded specifically to states that were hosting FIFA World Cup matches and to the National Capital Region, which hosted events tied to the nation’s 250th anniversary. For the noncompetitive grant announced last week, the funding will be distributed to all 50 states, five territories, and Washington, D.C.

“Unlawful drones are not a future threat. They are a real and growing danger to our communities, critical infrastructure, and major public events,” said FEMA Administrator Cameron Hamilton. “Through this grant program, FEMA is enabling states and territories to build the capabilities they need to detect, identify, track and monitor drone threats before they can cause harm.”

FEMA cites a growing use of UAS by bad actors to “endanger the American people, threaten the integrity of our communities and jeopardize the protection of critical infrastructure and vital institutions.” In conjunction with coordinated efforts by the FBI, DHS, and the White House Task Force on the FIFA World Cup 2026 to address these threats, the grant also allows state and territorial governments to build capabilities to detect, identify, track, and monitor potential threats. 

This new funding opportunity is published on Grants.gov. Only State Administrative Agencies are eligible for the opportunity, and all applications must be submitted in FEMA Grants Outcomes (FEMA GO). The application period opened on October 16 and runs through November 16.