Why it Matters

Xtend Reality’s first-ever Washington lobbying effort signals the Israeli drone company’s push into the U.S. defense market. The June registration comes after the deadly Tower 22 attack exposed critical vulnerabilities in American drone defenses. Continental Strategy brings recent Senate experience through Craig Carbone, who served as Senator Rick Scott’s chief of staff until September 2024.

By the Numbers

Lobbying spend: First-time registrant with no prior federal lobbying expenditures

The team: Three lobbyists from Continental Strategy LLC:

  • Craig P. Carbone: Former chief of staff to Senator Rick Scott (R-FL)
  • Christopher Alonso Miles: Former deputy chief of staff to Rep. Carlos Curbelo (R-FL)
  • John D. Barsa: No congressional experience listed in records

Client background: Xtend Reality was founded in 2018 in Tel Aviv. The company makes human-guided autonomous drone systems using VR interfaces.

Broader Context

The January Tower 22 attack killed three American soldiers in Jordan. Iranian-backed militia drones exposed gaps in U.S. air defenses. Houthi attacks in the Red Sea forced the Navy to use expensive interceptors against cheap drones. Ukraine’s war demonstrated the effectiveness of swarm drone attacks. Congress banned Chinese drone manufacturers DJI and Autel in December 2024.

The Agenda

Xtend Reality hasn’t specified particular legislation in its registration. The company’s drone-on-drone interception technology addresses what military officials call the “cost curve” problem. Congress is considering multiple bills expanding counter-drone authorities. The COUNTER Act would give DoD more power to neutralize unauthorized drones. The NEDD Act would grant similar authority to protect nuclear facilities.

Competitive Landscape

Traditional defense contractors are competing for the same counter-drone contracts. Emerging American drone companies also vie for opportunities. Xtend’s Israeli origins may complicate navigation of technology transfer rules. The emphasis on domestic production could require significant U.S.-based manufacturing investments.

Between The Lines

Recent House Armed Services hearings highlighted the unsustainability of expensive missile-versus-cheap drone engagements. Defense Innovation Unit officials emphasized the need for layered counter-drone solutions. House Homeland Security testimony revealed bottlenecks in the Blue UAS certification process. Senator Scott has called for U.S. drone leadership and security improvements.

The Bottom Line

Xtend Reality is betting that recent drone attacks created lasting demand for counter-drone systems. The company’s VR-guided approach offers a potential solution to cost and effectiveness challenges. Success depends on navigating procurement rules and demonstrating clear advantages over established competitors.

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