North Dakota Senate Rejects Chinese Drone Replacement While Advancing BVLOS Network

O North Dakota Senate has voted to remove a $15 million drone replacement program from House Bill 1038 while preserving $11 million for expanding the state’s beyond visual line of sight (BVLOS) drone network, according to KFYR reports and legislative records, reports KFYRTV.

Senator Kyle Davison (R-Fargo) led the successful motion to strip the Chinese drone replacement provision, citing significant cost differences between current equipment and American-made alternatives. The Senate voted 29-15 to remove the replacement program, which would have affected approximately 300 drones across 14 state agencies and universities.

Cost analysis presented in Senate testimony revealed DJI Matrice 30 drones currently used by state agencies cost around $7,500, while NDAA-compliant alternatives from American manufacturers, such as Azul-petróleo and Skydio, range between $20,000 and $50,000. Chinese manufacturer DJI currently holds 70-80% of the U.S. drone market share, according to Northern Plains UAS Test Site testimony.

The preserved $11 million allocation supports North Dakota’s participation in the FAA Radar Data Pathfinder Program. This funding will help expand the state’s Vantis network coverage from 3,000 to 56,000 square miles by integrating federal radar data through the Northern Plains UAS Test Site.

The debate highlighted tensions between security concerns and operational practicality. Federal agencies including the FBI, Department of Defense, and Homeland Security have warned about potential Data Security risks with Chinese-manufactured drones. However, multiple independent audits, including a 2024 FTI Consulting Review, found no evidence of unauthorized data transmission when using DJI’s Local Data Mode.

The Vantis network expansion builds on the FAA’s September 2024 Letter of Acceptance recognizing the system as a safety mitigator for BVLOS operations. This designation allows drone operators to reference the network in waiver applications for extended flight operations.

The modified House Bill 1038 maintains crucial funding for integrating FAA radar data into the Vantis network, advancing North Dakota’s position as the first non-federal entity participating in the radar data program. The bill returns to the House for final consideration.

State agencies will continue operating their existing drone fleets while implementing security protocols. Industry observers note the replacement debate may resurface if pending federal regulations further restrict Chinese drone usage in critical infrastructure roles.