The Local Innovation for Flight Technologies Act of 2025 directs the Transportation Secretary to expand the use of drones and electric aircraft in American airspace. The bill requires the development of new rules within six months to allow drones to operate beyond the pilot's visual line of sight, establishes safety metrics for these operations, and directs the FAA to use artificial intelligence tools to speed up the approval process for drone operations. The legislation also creates a three-year pilot program offering grants to state, local, tribal, and territorial governments to partner with private companies and test electric vertical takeoff and landing aircraft (eVTOL) in various applications such as medical transport, cargo delivery, and rural access. Additionally, the bill asks the Transportation Secretary to explore ways to allow drones to operate over international waters and to prioritize American-made unmanned aircraft systems in national airspace integration.