The bill strengthens federal tools to deter and prosecute catalytic-converter theft—helping vehicle owners and enforcement—at the cost of added compliance burdens and legal risks for recyclers and sellers and increased federal enforcement expenses.
Vehicle owners (including many middle-class families) may experience fewer catalytic-converter thefts because trafficking stolen converters becomes a federal crime with prison and fine penalties.
Law enforcement and insurers gain clearer legal tools and pathways to disrupt theft networks because the statute defines lawful sources and permits federal prosecution.
Legitimate metal recycling businesses get greater legal clarity and protection when they follow ID and recordkeeping rules, reducing their legal risk when buying converters from lawful sources.
Small businesses and individuals who buy, sell, or possess converters risk federal prosecution if they fail to meet sometimes-complex state or local ID and recordkeeping requirements.
Businesses that recycle or trade in converters will incur compliance costs to verify seller eligibility and maintain required identification and records.
Federal prosecutions to enforce the new trafficking offense will increase Department of Justice caseloads and could raise taxpayer costs for enforcement and incarceration.
Based on analysis of 2 sections of legislative text.
Creates a federal crime for trafficking catalytic converters removed from vehicles, sets penalties, and provides an affirmative defense for documented, lawful transactions.
Creates a new federal criminal offense for buying, possessing, or trafficking catalytic converters removed from motor vehicles when the purchaser intends to sell, distribute, or dispose of them or the precious metals taken from them. The measure sets criminal penalties (fines and prison time), defines key terms, and creates an affirmative defense for certain lawful actors who comply with specified state and local identification and recordkeeping rules. The bill specifies penalties for a first offense (up to 5 years imprisonment or $100,000 fine) and for repeat offenses (up to 10 years or $200,000 fine). It also lists covered lawful actors for whom an affirmative defense applies (vehicle owners/lessees, OEMs/distributors/dealers acting in official duties, qualifying repair-facility employees, and metal recycling entities receiving converters from defined legitimate sources).
Official title: To amend title 18, United States Code, to prohibit the trafficking in catalytic converters.
Introduced July 23, 2026 by Brandon Gill · Last progress July 23, 2026