Why It Matters
Covenant Industries Inc. has joined the crowded competition for funding of unmanned aerial systems and counter-drone technologies at record levels. Congress plans to allocate billions through FY 2026 defense appropriations bills—specifically H.R. 4016 and S. 2572. To win, Covenant hired Holland & Knight LLP, bringing in Michael R. Wakefield, a former Senate Appropriations Committee senior counsel who worked directly for the panel deciding funding levels.
By the Numbers
Covenant Industries Inc. is a first-time lobbying entrant in 2025, investing $130,000 across three quarters through Holland & Knight LLP, with the last quarter reporting $50,000 in fees.
The four-person Holland & Knight team brings substantial firepower. Wakefield served as Senior Counsel for the Senate Appropriations Committee. Misha E. Lehrer worked for Sen. Chris Murphy (D-CT), providing Democratic access. Sean P. McGlynn previously assisted former Appropriations Chair Sen. Barbara Mikulski (D-MD). Michael Wilson focuses exclusively on Covenant’s aerial platform issues.
Covenant faces competition from organizations like Performance Drone Works LLC and Knightwerx LLC, which also lobby for unmanned aerial system appropriations in identical bills.
The Agenda
Covenant Industries Inc. is lobbying for research and development funding for aerial platform technologies, targeting H.R. 4016 and S. 2572—the FY 2026 House and Senate Defense Appropriations Bills.
The company’s narrow focus centers exclusively on securing federal funding for aerial platforms within the annual defense appropriations cycle. Covenant also retained American Defense International Inc., which filed October 2025 disclosures reporting zero lobbying fees.
Covenant’s advocacy aligns with strong congressional momentum, as Congress actively debates unmanned aerial systems and counter-UAS technologies in the FY 2026 defense bills.
Broader Context
Congress is prioritizing unmanned aerial systems and counter-drone technologies as core defense modernization goals. The FY 2026 National Defense Authorization Act authorizes over $800 million for UAS and $693 million for counter-UAS systems, reflecting bipartisan investment appetite.
The Pentagon has identified aerial platforms as a top defense technology priority for 2026. The Trump administration has signaled unprecedented commitment to defense spending, proposing a $1.5 trillion defense budget for FY 2027—a 50% increase from 2026. The FY 2026 Defense Appropriations Bill provides $148 billion for Research, Development, Test, and Evaluation across military services.
Beyond military applications, the Department of Homeland Security recently launched a new office for counter-drone technologies and made $500 million available to states and localities for counter-UAS efforts.
Between The Lines
Members are actively championing aerial technology investments. Sens. Schumer and Gillibrand secured $224.5 million for Air Force Research Lab R&D in unmanned systems. Sen. Hoeven announced $100 million for Project ULTRA drone development in North Dakota. Reps. Stefanik and Kean backed Project STARLING, deploying 3D-printed small unmanned aircraft.
The Senate Armed Services Committee provided $217 million above budget request for unmanned and counter-unmanned systems, reflecting bipartisan appetite for these technologies. Related legislative efforts include the U.S.-Israel Partnership Bills establishing joint counter-unmanned programs and the LEAD Act of 2025 streamlining exports for high-end drones to allies.
Competitive Landscape
Covenant Industries Inc. faces significant competition from defense contractors lobbying on similar issues within the same appropriations bills:
- Performance Drone Works LLC: Lobbying for appropriations supporting radio platforms for unmanned aerial systems
- Knightwerx LLC: Advocating for increased resources for small unmanned aerial systems
- Stark Aerospace Inc.: A newly registered firm focused on missile defense and unmanned aerial systems
This robust appropriations environment creates both opportunity and intense competition for contractors seeking federal R&D dollars.
The Bottom Line
Covenant Industries Inc. is making a strategic push for defense R&D funding by retaining Holland & Knight LLP for $50,000 in the last quarter. The company’s narrow focus on aerial platform technologies aligns with congressional momentum on unmanned systems. However, Covenant faces competition from other defense contractors lobbying the same appropriations bills, making its success uncertain despite insider expertise.
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