This Act establishes a federal licensing requirement for businesses engaged in the destruction of firearms, mandates specific destruction methods for government-surrendered weapons, and creates a grant program to fund this destruction.
Gabe Amo
Representative
RI-1
The Firearm Destruction Licensure Act of 2025 establishes a new federal license requirement for any business engaged in destroying firearms, excluding government agencies. Licensed destroyers must certify the use of a "covered method" when destroying firearms obtained from government entities, ensuring they are rendered permanently unusable scrap. The bill also mandates annual public reporting on destruction activities and creates a federal grant program to help local governments fund this destruction through licensed dealers.
New Federal Grant Program Created to Fund Gun Destruction, But Only for Certified Scrap Metal Processors
The Firearm Destruction Licensure Act of 2025 sets up a new federal licensing requirement for any private business whose main gig is destroying firearms. Basically, if you’re running a scrap yard that specializes in turning guns into unusable metal, you’ll now need a specific federal license, separate from a standard dealer’s license, to operate that part of your business.
The New Rules of the Scrap Heap
This bill formalizes and standardizes how firearms are destroyed, especially when they come from government agencies like police departments. If a licensed dealer takes a gun from a government entity for destruction, they must certify that they will use a "covered method of firearm destruction." What’s that? The bill doesn't say yet, but it defines it as a method that ensures the firearm and every single part cannot be put back together and is effectively turned into scrap metal. The Attorney General has 180 days after the law is signed to issue a final rule defining exactly what counts as a "covered method." This is a big deal because that future rule will decide who can play in this market and who can’t.
Who Pays for the Destruction?
Here’s the part that impacts local budgets: The bill creates a brand-new federal grant program, managed by the ATF, specifically to help state, local, and Tribal governments pay for gun destruction. Starting one year after the law takes effect, these governments can apply for funding to cover the costs of paying a licensed destroyer to use that mandated "covered method." Essentially, Uncle Sam is offering to pick up the tab for local police departments that want to permanently dispose of seized or unwanted guns.
Transparency and Paperwork
If you’re a licensed dealer who destroys guns, get ready for new administrative duties. You must submit an annual report to the ATF detailing how many guns you destroyed the previous year. Crucially, you have to break down how many came from government agencies and were destroyed using the covered method, versus how many were destroyed in other ways. The Attorney General is required to make these reports public, which means we’ll get a clear, annual look at the volume of firearms being taken out of circulation by licensed businesses.
The Fine Print for Dealers
For existing licensed dealers, this means updating your status and certifying compliance by the effective date (180 days after enactment). The stakes are high: if you willfully violate the certification requirement regarding government guns, the Attorney General can revoke your entire dealer’s license. This is a severe penalty and puts significant power in the hands of the Attorney General, especially since the term "willfully" can be open to interpretation. While the bill aims to standardize destruction, the lack of a defined "covered method" means the ATF will have significant regulatory power to shape this industry after the fact, which could create hurdles for smaller operators or those using current methods that might not meet the future standard.