Keeping Gun Dealers Honest Act of 2025
The Keeping Gun Dealers Honest Act of 2025 would substantially tighten federal oversight of licensed firearms dealers. It would increase how often inspectors can audit dealers, raise penalties for violations (including recordkeeping tied to trafficking), broaden the Attorney General’s enforcement tools (suspensions, revocations, and civil penalties), and add new requirements around inventory and licensing decisions. The bill also aims to accelerate dealer accountability by allowing license actions to occur sooner in certain criminal cases, expanding ATF staffing for inspections, and requiring regular reports to Congress on implementation and resources. Overall, the bill moves toward more frequent checks, harsher consequences for noncompliance, and stronger inventory/recordkeeping practices to deter trafficking and unsafe handling of firearms.
Key Points
- 1Increased inspections: The number of compliance inspections of licensed firearms dealers would rise from once to three times. This expands ATF oversight and ongoing monitoring of dealer practices. (Sec. 2)
- 2Higher penalties for violations: Penalties would be steepened, with maximum terms rising to five years for many violations. For conduct tied to offenses involving gun trafficking or related recordkeeping issues, the penalties could reach up to 10 years. (Secs. 3-4)
- 3Expanded licensing enforcement and due process: The Attorney General could suspend or revoke a dealer’s license or impose civil penalties up to $10,000 per violation for violations of federal gun laws or storage/safety requirements, with required notice and hearing. The bill also tightens license-issuance standards, allowing denial if issuing the license would pose public safety risks or if the applicant is not likely to comply with the law or is not suitable. (Sec. 5; Sec. 9)
- 4Inventory and recordkeeping in trafficking-related cases: The AG could require a licensed dealer to conduct a physical inventory and provide a detailed inventory record if (i) the dealer is convicted of unlawfully transferring a firearm, or (ii) 10 or more crime guns traced to the dealer are identified. (Sec. 8)
- 5Staffing and reporting to support enforcement: The Director of the ATF could hire at least 80 additional employees to support increased inspections and enforcement, and the ATF would submit biennial reports to Congress on implementation, resources needed, and recommendations to improve compliance and timely action against noncompliant dealers. (Secs. 7; Sec. 12)