Under the proposal, local law enforcement agencies would have had the ability to work in tighter coordination with the Defense Department and Federal Aviation Administration to track the drones, which have yet to be fully explained by authorities.
Paul acknowledged illegal drone flights over protected areas is concerning, but worried aloud about what he characterized as an expansion of government surveillance powers at a time when trust in government is at historic lows.
"This body must not rush to grant sweeping surveillance powers without proper consideration and debate by the committees of jurisdiction. Which is what I pledge to do beginning in January, when we will be in charge of the committees," Paul said.
The Kentucky senator — who is set to lead the Senate Homeland Security and Governmental Affairs Committee — also downplayed notions that the drones present an immediate threat and instead called on federal authorities to use the powers they already have to investigate and provide answers.
"We are being told this legislation is urgent, that it is needed to address an imminent drone threat, yet the government itself admits no such threat exists," he continued in a floor speech.
U.S. defense agencies have described the object seen over multiple states as a mix of "lawful commercial drones, hobbyist drones, and law enforcement drones as well as manned fixed-wing aircraft, helicopters, and stars mistakenly reported as drones."