S 2387119th CongressIn Committee

LEAD Act of 2025

Introduced: Jul 23, 2025

Sponsor: Sen. Cotton, Tom [R-AR] (R-Arkansas)

Technology & Innovation

Standard Summary

Comprehensive overview in 1-2 paragraphs

The LEAD Act of 2025 would change how certain unmanned aircraft systems (UAS) and related items are regulated for U.S. arms exports. It aims to treat reusable, ITAR-controlled UAS that are listed in the MTCR Annex as if they were manned aircraft for export-control purposes. It would also create a new policy statement to align these covered UAS with the Missile Technology Control Regime (MTCR) in a way that separates them from traditional missile technology controls. In addition, the bill requires the President to update federal regulations (ITAR and MTCR-related rules) within 180 days to implement these changes, including clarifying that these UAS are not launch vehicles or missile equipment and should be reviewed under criteria similar to manned aircraft while being treated as distinct from missiles for MTCR purposes. Overall, the bill would ease or reframe certain export controls for a specific class of reusable UAS, potentially broadening or reshaping international transfer of these systems and related components.

Key Points

1Covered unmanned aircraft systems and items defined: UAS that are controlled under ITAR and listed in the MTCR Annex and designed to be reusable; these would be treated as manned aircraft systems for export purposes and would not be considered launch vehicles or missile technology for MTCR purposes.
2Policy statement added: New Sec. 73C declares it is U.S. policy to treat covered UAS and items as manned aircraft systems under MTCR implementation.
3ITAR updates required: Within 180 days, the President must amend ITAR (22 C.F.R. 121.1) so that covered UAS are subject to the same export controls and review criteria as manned aircraft, but remain distinct from launch vehicles and missile tech, with separate criteria tailored to UAS.
4MTCR updates required: Within 180 days, the President must amend MTCR-related rules (22 C.F.R. 120.23) to treat covered UAS separately from missile technology, including for co-production and co-development with allies, and to classify them as manned aircraft systems not subject to MTCR controls or missile-technology reviews for MTCR adherence.
5Definitions cross-referenced: The bill ties definitions of covered UAS to the definition in 38(m)(2)(B) of the Arms Export Control Act, and uses MTCR and missile definitions from other parts of the law for consistency.

Impact Areas

Primary group/area affected:- U.S. defense and dual-use exporters of unmanned aircraft systems and related items that meet the defined criteria, as well as manufacturers of reusable UAS.Secondary group/area affected:- U.S. government regulators and policymakers responsible for implementing ITAR and MTCR rules (State Department, Department of Commerce, and allied interagency bodies).- International partners and potential foreign buyers or collaborators in UAS who rely on U.S. export controls and licensing.Additional impacts:- Regulatory clarity and potential acceleration or easing of transfers for certain reusable UAS, due to aligning them with manned aircraft controls while separating them from missile technology constraints.- Possible changes in international cooperative arrangements (co-production/co-development) with allies, given the MTCR treatment that distinguishes these UAS from traditional missile technology.- Legal and compliance implications for firms that must update their internal licensing processes to reflect the new definitions and regulatory criteria.

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