Pentagon Issues $84 Million in Funding for Small Drones Makers, Others

Meant to save companies from Covid-19 losses

The Pentagon is using the Defense Production Act to pay $84.4 million in funding to a collection of small military contractors, focusing on drone-makers, space, and shipbuilding companies. Officials say they are “essential” companies for the US.

The Defense Production Act allows the US to take certain economic actions in times of emergency. In this case, the funding is meant to bail-out companies that would otherwise be losing money from the Covid-19 pandemic.

The Pentagon had suggested months ago that a move like this was coming, when other US industries were getting bailed out, and they suggested that armsmakers should get some federal subsidies as well, so they don’t go out of business during the pandemic.

Though most of the funding was $3 million range subsidies, $56 million was set-aside for steel company ArcelorMittal to “protect jobs” for building ships, and another $15 was given to LeoLabs to ensure they keep investing in space surveillance.

Author: Jason Ditz

Jason Ditz is senior editor of