Sponsors (5)
The bill strengthens Medicare Part A solvency and raises federal revenue through a large per-firearm excise tax, trading broader fiscal support for seniors and potential public-safety funding against higher costs for gun buyers, burdens on small firearm businesses and transferors, and added administrative and budgetary impacts.
Medicare beneficiaries and hospitals: provides $1.7 billion to the Medicare Part A (Hospital Insurance) Trust Fund for FY2026, strengthening Part A solvency and helping ensure inpatient payments continue.
Taxpayers and the Treasury: raises federal excise tax revenue by $200 per firearm (and $5 for other weapons), increasing federal receipts that can be used for government priorities.
Communities and public-health programs: creates a clearer dedicated revenue stream from higher firearm excise taxes that Congress could direct to gun-violence prevention or related public-safety programs.
Firearm purchasers: most buyers will face higher prices because manufacturers and transferors are likely to pass the $200-per-gun excise tax through to consumers.
Small firearm manufacturers and dealers: face a steep per-item tax that could reduce margins, force price increases, or threaten smaller businesses' viability.
Transferors and some sellers: removing the existing tax exception (striking the deeming sentence in §4182(a)) may impose retroactive tax liability or added recordkeeping and legal complexity for parties that previously relied on the exception.
Based on analysis of 3 sections of legislative text.
Increases federal transfer and making excise taxes on most firearms (to $200) and appropriates $1.7B to Medicare Part A for FY2026.
Official title: Amend the Internal Revenue Code of 1986 to repeal the elimination of tax on certain firearms under the National Firearms Act and to deposit the savings into the Medicare part A trust fund.
Introduced December 16, 2025 by Angela Deneece Alsobrooks · Last progress December 16, 2025
Restores higher federal excise taxes on most firearms by imposing a $200 transfer tax and a $200 making tax for each firearm (with a $5 transfer tax for items classed as “any other weapon”), and eliminates a current tax exception for certain firearms; those tax changes take effect for calendar quarters beginning more than 90 days after enactment. The bill also provides a one-time appropriation of $1.7 billion to the Federal Hospital Insurance Trust Fund (Medicare Part A) for fiscal year 2026, with the funds available until expended.