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The Pentagon has chosen 25 U.S. defense manufacturers for its $1 billion Drone Dominance Initiative, aimed at enhancing domestic small drone production. The initiative, which allocates approximately $150 million for prototype orders, will enter an initial testing phase called 'Gauntlet I' and focuses on developing small, lethal drones using U.S.-based supply chains. Defense Secretary Pete Hegseth indicated plans to deploy tens of thousands of these systems by 2026, marking a significant shift towards agile development in defense contracting.