Insights and Analysis
AI-washing – when AI hype becomes a litigation risk
On April 1, 2026, the Federal Aviation Administration (FAA) published a Federal Register notice outlining how it will implement Section 927 of the FAA Reauthorization Act of 2024, which authorizes the Agency to grant regulatory relief for certain unmanned aircraft system (UAS or drone) operations through waivers rather than exemptions. This authority allows the agency to streamline certain regulatory approvals that should not be subject to exemption requirements. The Notice provides important clarity on the scope and application of the FAA's authority under the Section 927 waiver framework.
Section 927 was enacted as part of the FAA Reauthorization Act of 2024 to provide the FAA with flexibility to grant regulatory relief for certain expanded drone operations through waivers rather than exemptions.1 The new waiver authority builds on earlier statutory mechanisms Congress has used to facilitate UAS integration, including Section 333 of the FAA Modernization and Reform Act of 2012,2 which was ultimately codified as Section 44807 of Title 49 of the United States Code.3 That framework allows the FAA to approve certain UAS operations without issuing traditional airworthiness or airman certificates, regulations that were written for manned aircraft and do not necessarily address drone-specific safety requirements. The FAA has typically exercised this authority by issuing exemptions after an operational safety evaluation.
During consideration of the 2024 FAA Reauthorization Act, industry stakeholders engaged with Congress on mechanisms to streamline regulatory relief for UAS operations to better integrate the technology into the National Airspace System (NAS). Hogan Lovells client the Commercial Drone Alliance (CDA) served as a primary industry advocate supporting inclusion of the Section 927 waiver authority in the statute. The Notice reflects the culmination of the reauthorization process, translating statutory authority developed with input from industry stakeholders into an administrative framework for regulatory relief.
In the Notice, the FAA emphasizes that Section 927 waivers and exemptions are parallel and complementary pathways. Both remain available to UAS operators, and both are evaluated using the same safety based analytical framework. Unlike exemptions, however, Section 927 waivers will not require petitioners to demonstrate a public benefit or go through a public notice and comment process. This distinction is designed to allow Section 927 waivers to be evaluated and approved more quickly, representing a streamlined pathway for companies taking this approach.
The FAA has identified four non-exclusive considerations it will use when determining whether the Section 927 waiver pathway is appropriate:
Applicants seeking a Section 927 waiver may submit a request directly by email to [email protected]. The FAA recommends that requests contain, at a minimum, the following information:
The FAA will provide applicants with an initial response indicating whether the request is appropriate for the Section 927 waiver pathway. If the FAA determines the request is not eligible, it may direct the applicant to another regulatory relief mechanism. The FAA notes that applicants cannot pursue an exemption and a Section 927 waiver simultaneously.
Authored by Lisa Ellman, Liz Forro, and Hanson Causbie.
This notice formally operationalizes the Section 927 waiver authority enacted by Congress, providing UAS manufacturers and operators with an additional regulatory pathway to consider alongside existing exemption and waiver mechanisms. Stakeholders should assess how this new process may apply to their operations as the FAA begins implementing Section 927 in practice.
Hogan Lovells leads the way in the drone industry, offering a team of experts with extensive experience and understanding of the intricate regulations governing UAS operations. Our team is dedicated to guiding clients through every step of the Section 927 waiver process, ensuring they fully leverage its benefits and opportunities, and can help you understand which regulatory option best suits your needs.
Whether you are a drone manufacturer, operator, or other stakeholder, our firm is equipped to provide strategic guidance and support tailored to your specific needs.
References
1 FAA Reauthorization Act of 2024, Pub. L. No. 118‑63, § 927, 138 Stat. 1025, 1362–63 (2024).
2 FAA Modernization and Reform Act of 2012, Pub. L. No. 112-95, § 333, 126 Stat. 11, 75–76 (2012).
3 49 U.S.C. § 44807.