Limits which firearm dealers recipients of Edward Byrne Memorial Justice Assistance Grants (Byrne JAG) can receive guns from: applicants and their grantees/subgrantees are barred from transferring to or buying firearms from licensed dealers that the ATF identifies as “covered.” The ATF must publish the list of covered dealers and the Attorney General (through the ATF Director) must notify state or local law enforcement when a firearm transferred by an agency is later traced to a crime.

The change adds definitions and makes technical adjustments to existing Byrne JAG language and related appropriations text. It creates new compliance duties for grant applicants/recipients and reporting/notification duties for the ATF, but does not itself create new grant funds in the text provided.