FEMA's Next $250M in Counter-Drone Funding Opens to All States, How to Prepare Now

In our last post, we broke down the over $1 billion in new federal funding FEMA announced to secure the 2026 FIFA World Cup and combat drone threats — and flagged the December 5, 2025 deadline for the first phase of the Counter-UAS (C-UAS) Grant Program.

That phase is now done. And it moved faster than almost anyone expected.

On December 30, 2025, FEMA awarded the first $250 million of the C-UAS Grant Program to the 11 World Cup host states and the National Capital Region — just 25 days after applications closed. FEMA called it the fastest non-disaster grant cycle in the agency's history.

If your state wasn't one of the 11, this is the update you've been waiting for — and if it was, there's good news too: host states are eligible for Phase 2 add-on funds, alongside other agencies within their borders. The second $250 million — plus any unallocated funds from the first round — opens to every state and territory in FY 2027. Here's what that means, and why the work to win it starts now, not when the next NOFO drops.

What Just Happened: Phase 1 in Review

The C-UAS Grant Program is a $500 million effort established under the One Big Beautiful Bill Act, 2025, split across two fiscal years. Phase 1 was the $250 million tranche reserved for jurisdictions hosting the highest-risk 2026 events.

• Awarded: December 30, 2025
• Recipients: The 11 FIFA World Cup host states — Texas, Florida, New York, New Jersey, California, Georgia, Missouri, Kansas, Massachusetts, Washington, and Pennsylvania — plus the National Capital Region (hosting America 250 events)
• Speed: 25 days from the December 5 application close to first awards
• Purpose: Detect, identify, track, and mitigate unauthorized drones around major events

The takeaway for everyone else isn't just that it happened — it's how fast it happened. FEMA bent its own administrative timelines to hit a hard date on the calendar. Phase 2 applicants should plan for the same compressed pace.

What's Coming: Phase 2 (FY 2027)

The remaining funding shifts from a handful of event-host states to the entire country.

• How much? $250 million, plus any unallocated funds from FY 2026.
• Who's eligible? All 56 states and territories — the 50 states, DC, Puerto Rico, the U.S. Virgin Islands, Guam, American Samoa, and the Northern Mariana Islands. Per FEMA's program fact sheet, State Administrative Agencies (SAAs) are the only entities that apply directly to FEMA; state, county, and city governments — including law enforcement, fire, EMS, emergency management, and airport and port authorities — apply as sub-applicants through their SAA. Tribal Nations also participate through their SAAs.
• When? The NOFO is expected as early as October 2026 — likely on the same compressed timeline as Phase 1.
• What's the focus? A deliberate pivot. Where Phase 1 was about securing specific events, Phase 2 is about building standing, nationwide detection and response capacity.

One important note: the FY 2027 Notice of Funding Opportunity (NOFO) has not been published yet — but it is expected as early as October 2026. FEMA has said the details will be finalized and shared after the FY 2026 awards play out. That's exactly why the preparation window is open right now, and why it won't stay open long.

How This Applies to You

If you operate an airport, port, prison, stadium, utility, water system, hospital, or other piece of critical infrastructure — or you protect public events — FY 2027 is your funding opportunity for permanent airspace security. That's true whether or not your state was in the first round; Phase 2 opens to every state and territory.

The shift in FEMA's emphasis matters for how you should think about your application. Based on the Phase 1 NOFO and FEMA's stated direction for Phase 2, the next round is expected to favor:

• Multi-capability solutions over single-sensor procurements
• Integration plans over equipment lists
• Standing capability over one-time event security
• Coordination with existing public safety infrastructure

In other words, a strong Phase 2 application tells an operational story — detection, response, and coordination working together — not just a hardware request.

Why "Speed Wins" Is the Real Lesson

Phase 1's 25-day turnaround is the clearest signal Phase 2 applicants have. Most first-round applications were assembled under extreme time pressure, and many were single-vendor proposals.

Phase 2 will reward jurisdictions that did their homework early. Partners who scope their needs before the NOFO publishes will have a complete, competitive application ready while others are still reading the requirements. Waiting until the NOFO drops to begin scoping is, structurally, too late.

What to Do Now (Before the NOFO Drops)

You can't submit an application that doesn't exist yet — but you can do everything up to the submit button. Here are the four moves, in order:

1. Engage your SAA. Your State Administrative Agency is the gatekeeper and the only entity that can apply directly. Get on their radar before the NOFO publishes. (Note: SAAs are required to pass through at least 97% of funding to local and tribal governments, so your relationship with them is essential.)
2. Run an aerial risk assessment. FEMA expects threat assessments tied to specific facility needs — not generic equipment wish lists. This is the foundation of a defensible request, and it's something we can help you build.
3. Define an integrated package. Detection paired with response and emergency coordination is far harder to deny than a standalone sensor purchase. Think about how your solution fits the larger public safety picture.
4. Pre-build your application. Draft your Investment Justification and Application Worksheet now. Both are competitive documents, and both benefit enormously from advance work.

Stronger Together: The Integrated Application

A single piece of hardware doesn't win a Phase 2 application — a complete operational story does. That story spans detection, response, and coordination, and no single vendor owns all of it.

That's why AirSight is building a coordinated go-to-market approach with partners across the public safety stack:

• AirSight provides detection and identification — AirGuard unifies RF, radar, Remote ID, and optical layers into one hardware-agnostic picture.
• Public safety integration partners bring the ground-side response that complements airspace coverage.
• Emergency management partners provide the incident coordination platforms states and agencies already rely on.
• Policy and advocacy partners help applicants frame their requests for SAAs, FEMA, and Congressional offices.

Bundled into a single integrated package, the application narrative aligns precisely with what FEMA has said it wants in Phase 2.

The Bottom Line

Phase 1 proved this funding moves fast. Phase 2 opens the door to every state and territory — and the agencies that prepare during this quiet window before the NOFO will be the ones ready to act the moment it publishes.

The window for advance preparation is open now. Don't wait for the starting gun.

Contact AirSight to schedule a 30-minute go-to-market session. We'll help you scope your eligible facilities, build the aerial risk assessment FEMA expects, and put together the technical specifications and quotes you need for a complete, competitive FY 2027 application.