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Grant Proposal: Federal Matching Funds for the X1 Racing Series to Accelerate Flying Car Innovation and Transportation Advancement

Submitted to:

Secretary of Transportation Patrick Duffy
U.S. Department of Transportation
1200 New Jersey Avenue, SE
Washington, DC 20590

Submitted by:

X1 Racing Series
Represented by: X1Racing (@realx1racing)
Website: x1racing.com
Contact: info@x1racing.com
Date: January 29, 2026


Executive Summary

The X1 Racing Series is pioneering the world’s first flying car racing competition, designed to accelerate the development and adoption of flying car transportation through intense, high-stakes airborne racing. Utilizing large-scale, remote-controlled vehicles enhanced by artificial intelligence, the series drives breakthroughs in advanced air mobility (AAM) and positions flying cars as a realistic, affordable future transportation solution.

This proposal requests a federal matching grant from the U.S. Department of Transportation (DOT) and/or the U.S. Space Force in a 50/50 structure aligned with private sponsor contributions, creating a total investment pool of at least $1 billion ($500 million federal + $500 million private sponsors).

This investment meets or exceeds the $1 billion minimum threshold under President Trump’s fast-track regulatory framework, which expedites approvals, permits, and environmental reviews for qualifying projects. Federal support would be directed toward series operations, team development costs, racing expenses, and technology advancement, with potential contributions from DOT infrastructure programs and U.S. Space Force innovation vehicles such as SpaceWERX.

The remote-controlled, AI-augmented design of these large vehicles offers compelling dual-use potential, including the capacity to carry substantial logistic payloads for defense logistics, cargo delivery, and agile sustainment applications, making the platform highly relevant to Space Force priorities in autonomous systems, rapid point-to-point transport, and next-generation aerospace capabilities.

The X1 Series will recruit established racing teams to participate **as an additional series**, enabling them to expand their portfolios and achieve greater economies of scale without displacing existing programs. It will also re-engage major corporate sponsors exiting legacy motorsports and serve as a real-world testing ground and expert resource for regulatory development with the FAA, DOT, and Space Force. By appealing directly to younger, digitally native audiences through accessible, simulator-based participation, X1 is positioned to become the most watched, most interactive, and most sponsor-attractive motorsport platform of the future.

This collaboration will generate economic growth, technological leadership in AAM and dual-use systems, job creation in aerospace and racing sectors, and sustainable mobility solutions aligned with national transportation and defense objectives.

Introduction and Background

The X1 Racing Series (x1racing.com) is redefining motorsport by launching the world’s first dedicated flying car racing competition. Teams design, build, and race high-performance airborne vehicles in high-speed, high-risk events that push the boundaries of advanced air mobility.

Core features include:

This initiative directly supports DOT priorities in AAM and eVTOL development while aligning with U.S. Space Force interests in autonomous aerospace systems, rapid prototyping, and dual-use technologies through SpaceWERX.

Problem Statement

Legacy motorsports, including NASCAR and Formula 1, are confronting sustained erosion in audience engagement and corporate sponsorship. NASCAR has experienced multi-year declines in television viewership and live attendance since its mid-2000s peak, with recent seasons continuing to lose ground—particularly as younger viewers migrate toward digital, interactive, and esports-style content. Formula 1, while benefiting from U.S. market growth in recent years, faces ongoing global challenges in retaining major sponsors as brands demand greater innovation relevance and demographic reach.

This audience contraction has triggered a corresponding reduction in sponsorship investment. Major corporations—including energy drink and beverage leaders—have scaled back commitments or shifted focus in traditional racing partnerships, seeking platforms that deliver stronger visibility among younger, digitally engaged consumers and clearer alignment with future-oriented technologies.

The X1 Racing Series addresses these structural weaknesses head-on. By requiring only simulator proficiency—comparable to high-level video gaming—the series dramatically lowers barriers to entry and participation. It eliminates the prohibitive costs, physical risks, and geographic constraints of conventional racing, making the sport inherently more accessible and appealing to younger generations raised on interactive digital media.

This format positions X1 to become the most engaging, interactive, and inclusive motorsport platform, capable of reversing viewership and sponsorship declines while attracting forward-thinking corporate partners eager to associate with cutting-edge, youth-relevant innovation.

Stakeholder Engagement and Partnerships

The X1 Racing Series has undertaken extensive stakeholder coordination to ensure broad support and project readiness. This includes engagement with relevant federal agencies, potential corporate sponsors, established racing teams, and industry partners. Letters of support and commitments have been secured from key stakeholders, demonstrating strong alignment and feasibility (see attached documentation for details).

Project Objectives

  1. Secure $500 million in federal matching funds (50/50 with private sponsors) to achieve a total investment of at least $1 billion, meeting the minimum threshold for expedited regulatory fast-tracking under President Trump’s initiative.
  2. Recruit and subsidize 10–15 established racing teams to participate in X1 **as an additional series**, allowing them to expand their portfolios and leverage shared resources without disrupting current racing commitments.
  3. Re-engage exiting sponsors (Red Bull, UPS, FedEx, GEICO, etc.) by offering a high-innovation, future-focused platform with strong youth appeal.
  4. Accelerate flying car technology maturation through competitive iteration, focusing on safety, affordability, scalability, and dual-use capabilities (including logistic payload delivery for defense applications).
  5. Establish X1 as a recognized expert resource for regulatory guidance, supplying empirical race data to inform DOT, FAA, and Space Force policies on AAM, airspace integration, autonomous systems, and certification standards.

Methods and Approach

Budget Overview

Category Projected Sponsor Contribution ($M) Requested Federal Match ($M) Total ($M)
Series Management (Events, Operations) 150 150 300
Team Subsidies (Racing Expenses, Development) 250 250 500
Technology Transfer, R&D, Regulatory & Dual-Use 100 100 200
Total 500 500 1,000

Funds will be subject to annual independent audits and inter-agency oversight.

Evaluation and Impact

Metrics include:

Broader outcomes: accelerated AAM deployment, reduced urban congestion and emissions, aerospace job creation, enhanced national security through dual-use advancements in logistics and sustainment, and revitalization of American motorsport leadership.

Conclusion

The X1 Racing Series offers a transformative platform to reverse the audience and sponsorship decline in legacy motorsports, accelerate flying car innovation, and deliver dual-use capabilities critical to national defense logistics. By recruiting established teams to participate **as an additional series**—expanding their capabilities into advanced air mobility while preserving existing programs—and committing $500 million in matching federal funds—leveraging DOT infrastructure priorities and Space Force innovation programs—the United States can achieve a total investment of at least $1 billion that meets the minimum threshold for fast-track regulatory treatment, attracts major corporate partners, engages younger generations, and establishes American leadership in next-generation mobility and aerospace.

We respectfully request the opportunity to discuss this proposal in detail with Secretary Duffy and relevant inter-agency partners.

Sincerely,
X1Racing
@realx1racing