You probably have some questions just by reading the post's title. I'll try to answer them.
First question: Is this what the American government is spending money in now? Yes, they are indeed.
Second: And how much money is that? Well, apparently they have put $4 million and five years of research into this.
Third one: Well, I know that wasting money is really their thing, but shouldn't something like this be secret or something? I mean, being a spy drone and all...? Good question, maybe they just need to show off every once in a while. Or maybe they can't actually spy with it because the battery only lasts for eight minutes and after some brainstorming they decided to put it on Youtube for everybody to freak out: