This bill prohibits federal agencies from using taxpayer dollars to purchase or operate unmanned aircraft systems manufactured by foreign entities that pose national security risks, effective October 1st following enactment. The ban applies broadly to all federal agencies and covers purchases through contracts, grants, or cooperative agreements, though it includes narrow exemptions for national security, counterterrorism, research, and testing purposes approved by the Secretaries of Homeland Security or Defense. The bill defines "covered foreign entities" to include companies on government screening lists, those subject to foreign government control, and notably any entity in China connected to the military, defense industry, or Chinese Communist Party. Agency heads can request one-year waivers on a case-by-case basis with approval from Homeland Security or Defense officials and notification to Congress. The legislation also directs the Secretary of Defense to increase domestic production of unmanned aircraft systems to support domestic alternatives.