New Gun Bill Funds NICS, Penalizes States on Mental Health Records, and Clarifies Interstate Transport Rules

This new legislation, dubbed the Protecting Communities and Preserving the Second Amendment Act of 2025, is essentially a massive federal tune-up of gun enforcement and background check systems. It’s got two main gears: one that cranks up federal prosecution of gun crimes and another that tightens the screws on states to share mental health records with the National Instant Criminal Background Check System (NICS). We’re talking about $20 million annually for NICS improvements (Sec. 3), new definitions for who is disqualified from buying a gun due to mental health (Sec. 5), and a major push to make every federal agency share its records (Sec. 4).

The Federal Hammer Comes Down: Enforcement and Prosecution

If you are a felon or a fugitive trying to buy a gun, the federal government is about to put a much bigger target on your back. This bill establishes a Nationwide Project Exile Expansion program in 15 high-homicide jurisdictions across the country, requiring local police to refer potential federal gun law violations to the U.S. Attorney’s office (Sec. 8). The goal is simple: prosecute these cases federally, where penalties are often tougher. They're also setting up a dedicated Felon and Fugitive Firearm Task Force within the Department of Justice (DOJ), backed by up to $10 million annually, specifically to investigate and prosecute people who lie on the background check form (Sec. 9). Speaking of lying, the maximum prison time for making a false statement during a firearm purchase is now clearly set at five years (Sec. 11).

One interesting twist is how the bill handles law enforcement operations. It puts a strict limit on the DOJ and its agencies (like the ATF) from running sting operations that encourage a licensed dealer to sell a gun to someone they suspect is making an illegal 'straw purchase' (buying for someone else). They can only do this if the Attorney General, Deputy AG, or the Assistant AG for the Criminal Division personally signs off on the plan in writing, confirming safeguards are in place (Sec. 10). This is a big deal, as it forces high-level accountability before the government can use certain aggressive tactics.

The Cost of Non-Compliance: State Funding on the Line

For state governments, this bill delivers a clear mandate with a financial threat. If a state isn't submitting required mental health records to NICS—specifically those showing a person is legally disqualified from owning a gun—they will start losing a chunk of their federal crime-fighting money. Eighteen months after the law passes, states that haven't complied will see a 5% cut to their Byrne JAG funds, a major source of funding for state and local criminal justice programs (Sec. 15). After five years, that penalty jumps to a 10% cut if they still haven't fixed the problem and passed the necessary state laws. This is the federal government using the power of the purse to force states to improve their NICS reporting, and it could mean less money for local police departments if state legislatures drag their feet.

Clearing Up Confusion for Gun Owners and the Military

The bill also cleans up some messy rules around where you can buy a gun and how you can transport it. It modernizes the definition of residency for gun law purposes, which is a huge benefit for active duty military members and federal employees stationed far from home. A soldier can now be considered a resident of their home state, their duty station state, or the state they live in and commute from (Sec. 16). This makes it easier for them to purchase firearms locally without bureaucratic headaches.

Crucially, it also updates the rules for interstate transportation (Sec. 17). If you are legally allowed to own a gun, you can transport it across state lines, even through places with restrictive local laws, provided the firearm is unloaded and either inaccessible or in a locked container. This provision is designed to preempt local laws that could trip up a law-abiding person just driving through. If you are arrested and successfully use this federal law as a defense, the court must reimburse your attorney's fees, which is a significant protection for travelers.

Mental Health and Defining Disqualification

Finally, the bill updates outdated and sometimes offensive language in federal gun law regarding mental health. It replaces terms like "mental defective" with "mentally incompetent" and clarifies that involuntary commitment to a psychiatric hospital is what triggers a gun prohibition (Sec. 5). It also specifies that a person is only considered "adjudicated mentally incompetent" if a judicial body—after a proper hearing—finds they are a danger to themselves or others. This is an important detail, as it attempts to narrow the scope of disqualification to those explicitly deemed dangerous by a court, rather than simply those who have received mental health treatment.