$33 Billion for Drones: How the One Big Beautiful Bill Creates a New Defense Boom (ZENA, KTOS, AVAV, LHX)

The One Big Beautiful Bill, also known as H.R. 1, was signed into law by President Trump on July 4, 2025. It delivers one of the largest federal investment packages in recent memory, combining permanent tax changes with over $150 billion in new defense spending and another $150 billion for border security, ICE, and related initiatives. Rather than broad stimulus, this law directs funds toward high-priority national capabilities with focused execution and firm timelines.

A standout allocation is the more than $33 billion in funding set aside for drone systems, autonomous platforms, and artificial intelligence technologies. That includes $13.5 billion for small uncrewed systems and autonomous weapons, $9 billion for collaborative combat aircraft, and nearly $3 billion for advanced surveillance and sensor platforms. The bill also supports U.S. drone manufacturing and federal certification through Blue UAS and Green UAS programs, which allow vetted companies to directly sell into military and homeland security channels.

Funding is structured to move fast. Although the total budget spans through 2034, initial pilot programs, procurement cycles, and R&D awards are expected within the next 12 months. That creates immediate opportunity for companies with proven drone hardware, scalable software, and national deployment capabilities. Use cases range from defense and border control to wildfire detection, agriculture, and smart logistics.

This is not a speculative theme. It is a policy-backed investment cycle that could reshape the U.S. drone landscape over the next decade. So where could this money actually land? Here are four stocks worth watching.

ZenaTech (Nasdaq: ZENA) is rapidly emerging as a key player in the next U.S. drone investment cycle, with strong alignment to the $33 billion in funding for drones, autonomy, and artificial intelligence systems under the One Big Beautiful Bill. The company, listed on the Nasdaq and dual-listed in Europe and Mexico, integrates proprietary drone platforms with quantum computing, enterprise software, and a fast-growing Drone as a Service (DaaS) business tailored to defense, government, and industrial customers.

The company's momentum is driven by its wholly owned subsidiary, ZenaDrone, which develops autonomous uncrewed aerial systems for surveillance, inspection, delivery, and reconnaissance missions. Its flagship platform, the ZenaDrone 1000, is a rugged, medium-lift VTOL aircraft equipped with secure communications, AI-assisted navigation, and mission-ready ISR capabilities. It has already completed paid trials with the U.S. Air Force and Navy Reserve, delivering critical cargo such as blood supplies. This platform, along with others in the portfolio, is advancing through the Green UAS and Blue UAS certification processes required for federal and defense procurement.

ZenaTech's broader drone lineup includes:

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IQ Nano: A compact indoor drone designed for autonomous operations in GPS-denied environments. It supports inventory management, security patrols, and real-time facility monitoring, using AI-driven navigation and barcode or RFID scanning.

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IQ Square: A versatile drone built for outdoor and indoor use in land surveying, infrastructure inspection, and mobile security missions.

Alongside its hardware offerings, ZenaTech is expanding its national Drone as a Service (DaaS) platform. The model allows clients to access drones through subscription or pay-per-use, including pilot services, maintenance, and full regulatory compliance. This structure is designed to streamline adoption for public and commercial sector users while providing flexibility and scalability as needs evolve.

Strategic Fit with Federal Funding

ZenaTech stands to benefit across several high-priority funding areas defined by the new legislation:

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$13.5 billion allocated for small uncrewed aerial systems and autonomous platforms. Both the ZenaDrone 1000 and IQ Nano are positioned to meet demand in this segment.

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$16 billion dedicated to military innovation programs, including funding for autonomous systems, reusable platforms, and next-generation AI. ZenaTech is actively pursuing partnerships through these initiatives.

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Restoration of full R&D expensing and availability of 100 percent bonus depreciation through 2029, which supports the company's reinvestment in advanced manufacturing, robotics, and AI drone technologies.

The company has also made significant moves to support its expansion:

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ZenaTech recently completed multiple acquisitions of land survey and engineering firms. These are now integrated into the DaaS business, enabling drone-powered surveying and inspection services for defense and infrastructure projects across the Southeast, Northwest, and tribal territories.

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Its Clear Sky initiative is building one of the first drone swarm and quantum computing platforms focused on wildfire prediction and environmental monitoring. Using AI-equipped drones with LiDAR and thermal sensors, the system collects massive volumes of geospatial data which are analyzed in real time through quantum models to simulate fire risk and weather behavior.

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The IQ Nano is now being tested for swarm functionality in defense applications. Proprietary imaging and sensing systems developed in-house are enabling fully autonomous coordination for real-time situational awareness and security missions.

In the first quarter of 2025, ZENA reported a 92 percent increase in revenue compared to the previous year. That growth reflects a combination of acquisitions and organic expansion across both its drone and enterprise software segments. According to CEO Shaun Passley, Ph.D., current spending increases are intentional and focused on long-term returns in product development, manufacturing, and market penetration, areas that are now directly supported by new federal tax incentives.

ZenaTech (Nasdaq: ZENA) is more than a promising name in the drone space. It has operational momentum, revenue traction, and strategic fit across multiple facets of the new law. With federal certifications underway, a scalable DaaS model, and growing engagement in defense, wildfire resilience, and infrastructure modernization, ZenaTech is positioned to capture meaningful share as public funding accelerates deployment across the U.S. drone ecosystem.

Kratos Defense & Security Solutions (Nasdaq: KTOS) is a proven player with a mature pipeline of military-grade autonomous systems. Its portfolio spans tactical drones, loitering munitions, AI-enabled ground convoys, and full C5ISR platforms. Flagship products include the XQ-58A Valkyrie, autonomous ground vehicles, and hypersonic propulsion systems used in multiple Department of Defense programs.

Kratos recently announced a new 100,000-square-foot engine facility in Oklahoma to support its GEK-series jet engines. This production capacity will support five lines and up to 500 engines annually, accelerating its ability to scale as new contracts roll out. The plant is state-backed and tied directly to defense propulsion needs.

In June, Kratos raised $556 million in equity capital to support national security priorities and large program expansion. CEO Eric DeMarco said Kratos is "uniquely positioned" for what he described as a generational recapitalization of advanced weapon systems. The company reported $302.6 million in revenue in Q1 2025, a book-to-bill ratio of 1.2, and $1.5 billion in total backlog with $12.6 billion in active proposals.

With a history of federal partnerships, certified systems, and active manufacturing expansion, Kratos stands to benefit from the bill's direct funding for tactical drones and autonomy.

AeroVironment (Nasdaq: AVAV) enters this cycle with momentum, scale, and a deep bench of autonomous systems. Its product range includes Group 3 drones, loitering munitions, counter-UAS technologies, and multi-domain ISR solutions. The company reported $1.2 billion in bookings for fiscal 2025, with a growing backlog and expectations to double revenue to as much as $2 billion in fiscal 2026.

Recent flight testing of Wildcat, a vertical takeoff drone developed under DARPA's EVADE program, confirms its edge in contested environments. The aircraft has successfully completed propulsion validation and payload integration, with ISR applications in development.

AeroVironment's acquisition of BlueHalo expanded its production scale and defense reach. The company also launched a $1.35 billion capital raise to fuel growth and repay debt. CEO Wahid Nawabi described the firm as "well positioned to meet rising global demand," with integrated solutions across all domains.

With DARPA relationships, next-gen drone designs, and certified ISR capabilities, AeroVironment is directly aligned with the new procurement and R&D investments triggered by the bill.

L3Harris Technologies (NYSE: LHX) brings scale, reliability, and program depth across air, land, sea, space, and cyber systems. The company's unmanned platforms are built for multi-domain defense missions and are already fielded across major U.S. government programs.

Earlier this year, L3Harris delivered the first mission-ready Skyraider II aircraft to U.S. Air Force Special Operations Command. The aircraft is designed for ISR, precision strike, and flexible battlefield roles. On the space front, the company is producing 34 satellites for federal missile defense and has five already in orbit. In Virginia, it is building five new solid rocket motor factories to expand domestic propulsion capacity.

L3Harris reported $5.1 billion in revenue in Q1 2025, with a 15.6 percent adjusted segment operating margin. It returned $800 million to shareholders through dividends and buybacks. CEO Christopher Kubasik emphasized the firm's alignment with evolving federal security priorities.

With end-to-end systems, advanced R&D investments, and federal-grade reliability, L3Harris is built to absorb and execute against the bill's historic drone and autonomy spending.

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