The U.S. Army has put counter-drone technology at the center of its near-term modernization push, requesting $994 million for counter-small unmanned aircraft systems (C-sUAS) in its FY2027 budget — a staggering 195 percent increase over the $336 million allocated in FY2026. The request signals that the Army views the unmanned aerial threat as one of its most urgent warfighting problems, and that it is willing to fund that priority at scale across multiple vendor platforms and mission profiles.
How the $994 Million Breaks Down
The FY2027 C-sUAS request is not a single line item — it is a portfolio of investments spread across five distinct capability categories. The largest share, $414 million, is directed at operational C-sUAS systems. That figure represents a 1,328 percent increase from the same category in FY2026, underscoring how dramatically the Army has reweighted its spending toward deployable, field-ready solutions rather than development programs.
Beyond the operational slice, the breakdown includes $165 million for fixed-site protection systems, $132 million for effectors — the intercepting munitions and non-kinetic payloads that actually defeat drones — $108 million for soldier-worn and man-portable systems, and $66 million for directed energy platforms. Together these categories reflect an Army trying to cover the full spectrum of counter-drone engagement: from defending forward operating bases with fixed installations, to giving individual soldiers tools to protect themselves from small commercial and military-grade drones at the squad level. The 1,328 percent increase in the operational category alone — from $29 million in FY2026 to $414 million in FY2027 — is the single sharpest year-over-year jump in the entire portfolio and signals a shift from developmental investment toward fielded capacity at scale.
Specific hardware procurements tied to this request include two Enduring High-Energy Laser (E-HEL) systems, 800 kinetic interceptor rounds, 29 non-kinetic rounds, 12 expeditionary launchers, 10 mobile launchers, and 24 Freedom Eagle units.
The Vendors Behind the Request
Three companies are prominently positioned to benefit from the FY2027 C-sUAS funding: Raytheon Technologies, AeroVironment, and Anduril Industries.
Raytheon supplies two variants of its Coyote interceptor. The Coyote Block 2 is a kinetic-kill loitering munition designed to physically collide with and destroy target drones. The Coyote Block 3 NK is a non-kinetic variant capable of defeating drone threats through electronic means rather than physical destruction — an important capability when commanders need to minimize collateral damage or preserve evidence of adversary systems. Both Coyote variants have been part of the Army's C-sUAS toolkit for several years, and the FY2027 request extends that relationship at higher volume.
AeroVironment has secured a $96 million contract for its Freedom Eagle long-range kinetic interceptor (LRKI) and the SB 400 system, awarded in late 2025. The 24 Freedom Eagle units included in the FY2027 hardware procurement reflect the Army's continued confidence in AeroVironment's longer-range kinetic intercept capability. The SB 400 complements Freedom Eagle by addressing shorter-range engagements, giving the Army a tiered AeroVironment solution within the broader C-sUAS portfolio.
Anduril Industries brings a different approach to the fight. Its Anvil system is an autonomous C-sUAS platform, meaning it uses onboard sensing and machine intelligence to identify, track, and intercept drone targets with minimal human-in-the-loop latency. As the Army scales C-sUAS capacity, autonomous intercept platforms like Anvil become particularly valuable in scenarios where the volume of incoming drones could overwhelm manually operated systems. The combination of 800 kinetic rounds and 29 non-kinetic rounds in the FY2027 hardware request illustrates the Army's intent to maintain both hard-kill and soft-kill options within the same operational framework — giving commanders flexibility to choose the appropriate intercept method based on rules of engagement, target type, and proximity to friendly forces.
What It Means for Contractors
The FY2027 request is a strong signal that C-sUAS is one of the Army's highest-conviction near-term investment areas through the remainder of the decade. The 195 percent year-over-year increase is not a one-time correction — the Army has already signaled that it intends to request approximately $1.4 billion in FY2028, which would represent a 316 percent increase over the FY2026 baseline. If those future requests are enacted, the C-sUAS market could nearly quadruple in size within two fiscal years.
For prime contractors and integrators already on contract — Raytheon, AeroVironment, and Anduril — the trajectory is favorable. Each has positioned a distinct capability in the Army's layered defense architecture, reducing the likelihood that any single vendor sweeps the entire budget at the expense of the others. Raytheon covers kinetic and non-kinetic Coyote rounds. AeroVironment anchors the longer-range kinetic intercept mission with Freedom Eagle and the SB 400. Anduril fills the autonomous engagement role with Anvil. That diversification across capability tiers suggests the Army views C-sUAS as a portfolio problem, not a winner-take-all competition.
For smaller firms and new entrants, the directed energy category — funded at $66 million in FY2027 — is worth watching closely. The two E-HEL systems included in the request suggest the Army is beginning to operationalize high-energy laser technology for counter-drone missions. Directed energy procurement volumes are modest today but could grow substantially if ongoing field performance data continues to support the technology's maturation. Contractors with directed energy expertise, counter-electronics capabilities, or electronic warfare integration experience may find opportunities as the Army broadens its non-kinetic toolkit.
All of the FY2027 C-sUAS funding is classified as discretionary spending, meaning it is subject to the full congressional appropriations process. Contractors should track markup activity in both the House and Senate Armed Services Committees. Any continuing resolution scenario that delays FY2027 appropriations could compress procurement timelines and create execution risk for programs scheduled to begin deliveries early in the fiscal year. The Army has already indicated it plans to request approximately $1.4 billion in FY2028 — a 316 percent increase over the FY2026 baseline — which would make C-sUAS one of the fastest-growing procurement lines in the ground forces budget if those requests are enacted.
