Keeping Gun Dealers Honest Act of 2025

This bill gives the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) more power to oversee businesses that are licensed to sell, import, or make firearms. It lets the ATF deny a license if it could put public safety at risk, increases the number of inspections the ATF can do each year from one to three, and adds 80 new staff to carry out those inspections. The ATF would also be able to suspend a dealer's license or fine them for breaking federal firearms laws, and could require dealers to count their inventory if they illegally transfer a gun or if 10 or more crime-linked guns are traced back to them. The bill also raises the maximum prison sentence from one year to five years for licensed dealers or collectors who knowingly put false information in their required firearms records.

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