Sponsors (5)
The bill raises new revenue (including a large per-gun excise tax) and provides a one-year Medicare Part A infusion—supporting public health priorities and short-term Medicare solvency—at the cost of higher prices for gun buyers, increased burdens on the firearm industry, and added near-term federal spending that could crowd out other priorities.
Medicare beneficiaries, hospitals, and providers: provides a $1.7 billion infusion to the Medicare Part A (Hospital Insurance) Trust Fund for FY2026, strengthening short-term solvency and ensuring continued inpatient payment flows.
Federal government / taxpayers: increases federal excise tax revenue by imposing a $200 tax on most firearms made or transferred (and $5 on 'any other weapon'), generating new Treasury receipts that can fund federal priorities.
Communities and public-health programs: creates a dedicated revenue stream (via higher firearm excise taxes) that Congress can allocate to public health or gun-violence-prevention programs.
Firearm purchasers / taxpayers: consumers buying most firearms will likely face substantially higher prices because manufacturers and transferors are likely to pass the $200-per-gun excise tax onto buyers.
Small firearm manufacturers, dealers, and transferors: face materially higher per-item tax burdens that can reduce margins, raise operating costs, and—together with the removal of an existing tax exception—create new recordkeeping obligations and potential retroactive liabilities.
Federal agencies and industry: the IRS/Treasury and firearm businesses will incur administrative and compliance burdens to implement, collect, and report the higher per-firearm excise taxes.
Based on analysis of 3 sections of legislative text.
Raises federal excise transfer and making taxes on most firearms to $200 (with $5 for 'any other weapon'), removes an exception, and appropriates $1.7B to Medicare Part A for FY2026.
Introduced December 16, 2025 by Angela Deneece Alsobrooks · Last progress December 16, 2025
Restores and raises federal excise taxes on transfers and making of most firearms — generally to $200 per transfer and $200 per making — while keeping a $5 transfer tax for firearms classified as "any other weapon." It also removes a current statutory exception that previously treated some firearms as already taxed. The tax changes take effect for calendar quarters beginning more than 90 days after enactment. Separately, the bill appropriates $1.7 billion to the Federal Hospital Insurance Trust Fund (Medicare Part A) for fiscal year 2026, with the funds available until expended and drawn from Treasury funds not otherwise appropriated.