Feds Propose $360M Yearly for Gun Buybacks Using Special Prepaid Cards Starting 2025

The Bottom Line Up Front

Congress is looking at a new bill, the "Safer Neighborhoods Gun Buyback Act of 2025," which aims to get unwanted firearms off the streets through federally funded buyback programs. The plan involves authorizing $360 million each year for fiscal years 2025 through 2027. This money would go out as grants to states, local governments, Tribal governments, and even some licensed gun dealers to run these programs. Instead of cash, people turning in guns would get special "smart prepaid cards."

Cash for Guns, But Make It Plastic

Here's the twist: the buybacks wouldn't use cash. Participants would receive a "smart prepaid card" loaded with 125% of the gun's determined market value (Sec 105(b)(2)). Think of it like a gift card, but with strict rules. The Director of the Bureau of Justice Assistance gets to decide what that market value is for different types of firearms (Sec 104(b)).

Crucially, these cards are designed only for buying regular goods and services. The bill explicitly states they cannot be used to purchase firearms or ammunition, and this restriction must be printed clearly on the card itself (Sec 106, Sec 104(c)). Trying to use these cards for guns or ammo could land someone a hefty fine – up to $100,000 under a proposed new law (Sec 201, adding 18 U.S.C. 932).

Who Runs the Show (and How)?

States, local governments, and Tribal governments can apply for these two-year grants (Sec 101, Sec 103). They can run the buybacks themselves or give subgrants to "covered gun dealers" to participate. A "covered gun dealer" is one with a clean record – no ATF warning letters or conferences in the past five years – and isn't located where the government is already running its own grant-funded program (Sec 106).

There are strings attached to the money. Governments must use at least 5% of funds for destroying collected guns and ammo, and can use up to 15% for administrative costs, like running background checks on the collected weapons (Sec 105(a)). Participating dealers have their own rules: they must verify the gun isn't reported stolen using federal databases (referencing 28 U.S.C. 534(a)(5)) and hand over all collected firearms and ammo within 30 days (Sec 105(b)).

From Buyback to Background Check

Once a gun is collected, it doesn't just disappear. Within 21 days, the agency that received it (whether ATF, state, or local government) must check databases to see if the firearm was involved in a crime (Sec 105(e)). If it flags a connection, the gun goes to the relevant prosecuting authority. If not, the plan is for it to be destroyed – the bill specifically prohibits reselling any guns or ammo collected through the program (Sec 105(d)). While ammo can be turned in alongside guns, it won't be paid for with the prepaid cards and is also slated for destruction (Sec 105(c)). The goal is clear: remove these specific firearms from circulation permanently.