DNR AAM Statewide Mobility Challenges

The Michigan Department of Natural Resources (DNR) AAM Statewide Mobility Challenge is a challenge-based pilot opportunity administered in coordination with the Michigan Office of Future Mobility and Electrification (OFME). The purpose of the challenge is to modernize DNR's aerial operations by replacing non-NDAA compliant drones and adding vertical take-off and landing (VTOL) fixed-wing mapping capacity. Together, these technology upgrades expand safe, compliant coverage for wildfire management, forest health, and large-scale mapping, delivering faster, higher-quality data and reducing risk to personnel.

To be eligible, applicants must partner with the DNR, submit a project that solves the department's identified operational challenges, and commit matching funds in the form of financial resources or fair market value in-kind contributions. While applicants do not need to be headquartered in Michigan, applications must provide a clear plan for growth within the state. Priority consideration is awarded to proposals that demonstrate a commitment to establishing or expanding drone manufacturing and production capacity within Michigan in alignment with federal domestic drone manufacturing priorities.

Eligible projects must demonstrably leverage Advanced Air Mobility (AAM) technologies, such as unmanned aircraft systems (UAS), advanced sensors, AI-powered analytics, and innovative aviation platforms. Projects must integrate seamlessly with existing state infrastructure and technologies, provide direct and quantifiable economic benefits to Michigan (such as job creation, workforce development, or efficiency gains), provide a detailed and compliant deployment plan, and demonstrate scalability and financial sustainability beyond the initial grant demonstration phase.

The application process requires submission of a comprehensive proposal following informational sessions held in November 2025. Applications are evaluated by a review committee on a best-value basis considering project description, alignment with state mobility goals, team capacity and experience, financial sustainability, technology interoperability, matching funds commitment, overall proposal quality, and proposed project costs.