New York Public Safety Grants

What the Enacted New York Law Actually Covers

Chapter 683 of 2025, as amended by the 2026 chapter amendment, adds State Finance Law §163-e and General Municipal Law §103-h. When effective, covered state agencies and political subdivisions cannot enter into or renew contracts for technology prohibited from federal procurement under NDAA Section 889; the local provision also refers to the ITS restricted-technology list. ITS must consult DHSES and OGS to create and regularly update that list and publish it online.

The current law is scheduled to take effect December 19, 2027. Existing covered technology need not be removed or replaced solely because of these sections and may be used through its lifecycle under the statutory grandfather language. Agencies should track ITS guidance and agency-specific rules before signing long-lived contracts.

The Drone-Specific Exemption Needs a System Review

Section 163-e(4) says an otherwise restricted UAS, or equipment or service relating to its operation, must be exempt if collected information is stored and maintained exclusively in the United States and inaccessible to the otherwise restricted business or entity, or it is operated using software developed and maintained in the United States. The statute explicitly mentions state agencies, authorities and political subdivisions in this provision. It does not discourage acquisition of U.S.-manufactured UAS.

Document where imagery and telemetry reside, who can access them, the operating software’s development and maintenance, support access, updates and proof from the supplier. Because local §103-h does not repeat this exemption, local procurement counsel should confirm how §163-e(4) applies to a municipal transaction. It is a New York statutory exemption, not a federal award or FCC exemption.

Waivers, Guidance and the Transition

ITS, collaborating with DHSES, OGS, the Division of Military and Naval Affairs and the chief cyber officer, may grant a state-law waiver upon the statutory public-interest, market-availability and network-security findings. An entity receiving a federal Section 889 waiver must notify ITS within 30 days under the enacted sections. ITS guidance and restricted-list scope should be checked at procurement time.

A waiver pathway is not automatic approval. Retain the written determination, system inventory, contract terms and grant administrator decision. A state waiver does not displace federal rules attached to a grant or contract.

Federal UAS Awards: ASDA, BJA and Section 889

OMB M-26-02, Appendix D implements the American Security Drone Act for federal awards. Since December 22, 2025, federal award funds generally cannot be used to procure, or in connection with operating, a FASC-prohibited UAS, subject to federal exemptions and waivers. BJA’s September 2026 UAS guidance also calls for express prior approval, a certification tied to the Blue UAS Cleared List and privacy/cyber assurances for its grants.

Section 889 concerns specified telecommunications/video-surveillance equipment and services and has its own contract and award implications. TAA, FCC equipment authorization and Blue UAS are distinct tests. Check the full aircraft, payload, radios, cameras, software, accessories and federal award terms rather than trusting a single “NDAA compliant” label.

Privacy, Flight and Cybersecurity Controls

Before deployment, select the applicable FAA Part 107 or public-aircraft authority, airspace permission and training; implement evidence retention, access and release policy; and review the agency’s privacy, records and cybersecurity rules. Request the vendor’s component bill of materials, data-flow diagram, storage location, encryption, logs, vulnerability/patch process and incident response terms. Confirm current FCC equipment status for radio-equipped devices.

New York’s §163-e future exemption is centered on U.S. data location/access or U.S.-maintained software; documenting those facts now also strengthens the grant file. Local policy and any special site restrictions may add requirements.

Practical New York UAS Procurement Checklist

1. 1Identify the buyer and every funding source. Separate state/local purchases, federal contracts, federal direct awards, and federal pass-through funds; record acquisition and operational funding.
2. 2Apply current law and the 2027 transition. NY State Finance Law §163-e and General Municipal Law §103-h take effect Dec. 19, 2027; check present agency policies and prepare for ITS guidance/list.
3. 3Screen the actual equipment and service. Review Section 889 covered technology, ITS restricted list when published, component origin, communications links, software, cloud and vendor access.
4. 4Evaluate the NY UAS exemption carefully. Document domestic data storage, access controls or qualifying U.S.-developed-and-maintained software under §163-e(4); have counsel assess local §103-h and evidence.
5. 5Apply the federal award test independently. For federal UAS money, check ASDA, OMB M-26-02 and FASC status. A state exemption or state waiver does not grant a federal exemption.
6. 6Get program-specific approval. BJA-funded UAS require prior approval and its current Blue UAS certification; verify each grant’s allowable costs and any FCC or TAA clauses.
7. 7Preserve the decision. Keep solicitations, product evidence, data-flow map, security review, FAA authority, agency and grant approvals, and any written waiver.