S2155-119

What This Bill Does

The "Keeping Gun Dealers Honest Act of 2025" significantly strengthens federal oversight and accountability of licensed firearms dealers. The bill increases ATF inspection authority from once to three times annually, raises penalties for violations from 1 to 5 years imprisonment (up to 10 years for offenses aiding gun trafficking), and gives the Attorney General broader power to deny, suspend, or revoke dealer licenses while imposing civil penalties up to $10,000 per violation.

Who Benefits and How

• Public safety advocates and communities benefit from enhanced enforcement mechanisms designed to reduce firearms reaching criminals through negligent or non-compliant dealers.
• Law enforcement (ATF) gains expanded authority with at least 80 additional employees authorized for inspections, more frequent inspection rights, and stronger enforcement tools including the ability to require physical inventories from dealers linked to 10+ traced crime guns.
• The Attorney General receives broader discretionary power to deny licenses to applicants deemed unsuitable or likely to pose public safety risks.

Who Bears the Burden and How

• Licensed firearms dealers, importers, manufacturers, and collectors face substantially increased regulatory burden: more frequent inspections (up to 3 times annually vs. once), higher penalties for violations (5-10 years imprisonment vs. 1 year), civil penalties up to $10,000 per violation, and potential license suspension or revocation. The removal of the "willful" violation standard makes it easier to penalize dealers for any violation, not just intentional ones.
• Dealers linked to crime guns must conduct physical inventories and provide detailed records to the Attorney General if convicted of unlawful transfers or if 10+ crime guns trace back to them.
• License applicants face new discretionary denial authority based on public safety concerns or "suitability" determinations.

Key Provisions

• Increases allowed compliance inspections from once to three times per year
• Raises imprisonment penalties from 1 year to 5 years for violations; up to 10 years for offenses aiding gun trafficking
• Authorizes civil penalties up to $10,000 per violation and license suspension/revocation authority
• Removes "willful" requirement from violation standards, lowering the threshold for enforcement action
• Authorizes hiring of at least 80 additional ATF employees for inspections
• Requires physical inventory audits for dealers convicted of unlawful transfers or linked to 10+ traced crime guns
• Grants Attorney General discretion to deny licenses based on public safety or applicant suitability concerns