North Dakota is preparing to choose vendors, aircraft and sensors for a $9 million effort to replace noncompliant drones used by state agencies and public universities. The Department of Commerce said Sept. 15 that technical and cost reviews are complete and the Drone Replacement Program has reached its final procurement stage.

The immediate consequence is operational: participating agencies have reviewed recommended aircraft and sensor packages, and the state is now finalizing allocations and prices before purchases begin. The announcement did not name vendors, disclose the number of aircraft to be bought or give a delivery schedule. That leaves the final scope and unit costs unresolved even as the procurement moves closer to an award.

The program was authorized in the Commerce Department budget passed in 2025. The Northern Plains UAS Test Site’s program guide says lawmakers appropriated $9 million from the Strategic Investment and Improvements Fund. The test site administers the initiative for Commerce, while the state Office of Management and Budget is responsible for the competitive procurement.

Eligibility is narrower than a general grant for local governments. The program covers North Dakota state agencies and entities in the North Dakota University System that owned qualifying drones before Jan. 1, 2025. Counties, cities and local law-enforcement agencies are not currently eligible. Participation is voluntary, and agencies must surrender the systems accepted for replacement.

The replacement plan is mission-based rather than a guaranteed one-for-one exchange. According to the program’s eligibility and logistics rules, approved packages may include aircraft, batteries, chargers, essential sensors and initial operator training. Agencies will be responsible for subscriptions, maintenance, upgrades and future replacement costs after deployment.

North Dakota State University has told researchers that the transition responds to federal restrictions that took effect Dec. 22, 2025. Its institutional guidance on covered foreign drones says federal money may no longer be used to buy or operate systems that fail the applicable security standards. The university identifies DJI, Autel and other covered brands as affected and directs researchers toward the state replacement process.

Commerce said the state evaluated each agency’s existing fleet, missions and available alternatives before seeking bids. The program is intended to preserve access to federal funding while moving agencies toward systems that meet National Defense Authorization Act and American Security Drone Act requirements. The department said agencies have already provided feedback on the recommended platforms, but final selections remain pending.

The new systems may also be connected to Vantis, North Dakota’s statewide network for flights beyond a pilot’s visual line of sight. A separate Vantis program summary says the test site will provide operational and integration support, alongside training on the replacement aircraft.

For taxpayers and participating agencies, the next meaningful disclosure will be the award itself: which vendors won, how many systems the state will buy, how the $9 million is divided and when equipment reaches operators. Commerce said those details will be shared with agencies after selections and allocations are complete.