Fire Sale Loophole Closing Act of 2025

House Votes

This bill, called the Fire Sale Loophole Closing Act of 2025, aims to stop licensed gun businesses from moving their store inventory into personal hands when their federal license is being pulled or not renewed. It also says that ATF can set rules for how gun dealers close their businesses and handle leftover guns when a license ends.

If a dealer is told their license will be revoked or not renewed, they may not shift any inventory guns into a personal collection, give them to employees, or receive those inventory guns themselves. If the license is actually revoked or expires, the person can only transfer those inventory guns to a licensed dealer or to law enforcement, and only within 30 days; after 30 days, transfers to dealers are also banned. Anyone who did move a business gun into a personal collection may not sell it for one year. “Business inventory firearm” means any gun that had to be recorded in the shop’s acquisition and disposition logs. Notices about license revocations or denials must include the text of these rules. Breaking these rules can bring fines and up to 1 year in prison, or up to 5 years if done willfully .

Key points

• Who is affected: People and businesses with federal firearms licenses, and their employees.
• What changes: No moving store guns into personal collections or to employees after notice; only transfers to licensed dealers or law enforcement within 30 days after a license ends; no selling a moved gun for one year; notices must include the rules; penalties include fines and possible jail time .
• When: The 30-day clock starts on the date the license is revoked or expires, as described in the bill.