The AMMO Act requires federal licensing for ammunition dealing, mandates background checks for ammunition transfers by FFLs, restricts bulk ammunition sales, and establishes new recordkeeping and straw purchase prohibitions for ammunition.
Elizabeth Warren
Senator
MA
The AMMO Act modernizes federal ammunition regulations by requiring federal licenses for ammunition dealing and mandating recordkeeping for licensed sellers. It also prohibits straw purchases of ammunition and establishes new restrictions and background check requirements for bulk ammunition sales by Federal Firearms Licensees. Finally, the bill mandates annual public reporting from the ATF regarding violations of these new rules.
The Ammunition Modernization and Monitoring Oversight Act, or the AMMO Act, is a major overhaul of how ammunition is regulated and sold in the U.S. Essentially, this bill pulls ammunition sales under the same federal scrutiny that already applies to firearms, adding new licensing, record-keeping, and, critically, background check requirements.
Right now, if you sell firearms, you need a federal license (FFL). Section 2 of the AMMO Act changes this by requiring anyone who is in the business of dealing in ammunition to also obtain this federal license. This means the local sporting goods store or online retailer that only sells ammo is now treated exactly like a licensed gun dealer, complete with the associated fees and federal oversight. Section 3 then mandates that these newly licensed dealers must keep detailed records of all ammunition sales and inventory, just like they do for guns. This means the government will now have a clear paper trail for ammunition transactions.
The most significant change for the average consumer is found in Section 5, which puts strict limits on how much ammunition an unlicensed person can buy from a licensed dealer over a short period. If you’re a high-volume shooter, a competitive athlete, or someone who likes to stock up, pay attention: you can’t buy more than 1,000 rounds of most calibers (or 100 rounds of .50 caliber) within any five-day period.
To make a purchase, you must sign a written certification that you are not exceeding this limit. The licensed seller then has to collect your ID, complete a federal form, and send a copy of that form to the Attorney General within 30 days. This creates a mandatory reporting system for large purchases, essentially creating a record of who bought how much and when. If a seller messes up the paperwork or sells too much, the penalties are severe—fines up to $250,000 and the potential loss of their license. For sellers, the compliance burden and risk of error are now extremely high.
Section 6 introduces the requirement for a background check on nearly all ammunition sales. If you are buying ammo from a Federal Firearms Licensee (FFL)—which will now include all major ammunition dealers—they must contact the National Instant Criminal Background Check System (NICS) before completing the sale. This is the same system used for buying a gun. The dealer must receive a unique ID number confirming you are not prohibited from possessing ammunition under federal or state law. The bill does carve out an exception: if you have a valid state-issued permit to acquire or possess ammunition or a firearm, and that permit was issued within the last five years after a background check, the NICS check can be skipped. To handle this new workload, the bill authorizes up to $150 million to upgrade the NICS system.
For the average person who buys a box of ammo once a year, this means a trip to the store will now involve showing ID, filling out a form, and waiting for a NICS check, adding time and friction to the purchase process. For competitive shooters or training facilities that routinely buy thousands of rounds, the 1,000-round cap per five days means they will have to adjust their purchasing habits significantly.
Crucially, while the bill states it doesn't authorize a national registry, the mandatory reporting of bulk sales to the Attorney General (Section 5) creates a centralized database of specific consumer purchases. This is a point of concern for those worried about government tracking of legal purchases. Furthermore, the massive new administrative load and the risk of huge fines for sellers are likely to increase the cost of ammunition for everyone, as dealers pass on their compliance costs and risk premiums. All of these changes kick in 120 days after the bill is signed into law.