H.R. 3770, FIREARM Act of 2025

H.R. 3770 would prohibit the Department of Justice (DOJ) from revoking a license to sell firearms (or denying a renewal) against a federally licensed firearms dealer, importer, or manufacturer based solely on a self-reported violation of the Gun Control Act, except under certain circumstances. In addition, the bill would require the department to allow the licensee 30 days after receiving notification of a violation to correct that violation before bringing an enforcement action. The bill also would amend the judicial review process for challenging the revocation of a license.

H.R. 3770 would allow any business that surrendered its license to sell firearms or had its license revoked pursuant to the Enhanced Regulatory Enforcement Policy to reapply for a license. That policy, implemented by DOJ between 2021 and 2024, focused on inspections of federal firearms licensees who had committed at least one violation of the Gun Control Act.

Under current law, applicants for a license to sell firearms are subject to a $200 fee for new licenses or $90 for renewals; the license is valid for three years. Firearms importers and manufacturers are subject to similar fees. Those fees are recorded in the budget as revenues. CBO expects that some businesses that previously surrendered their licenses or had them revoked would reapply under the bill and pay those fees. Using information from DOJ on the number of businesses that had their licenses revoked over the 2021-2024 period, CBO estimates that enacting H.R. 3770 would increase revenues by less than $500,000 over the 2026-2035 period.

CBO estimates that implementing H.R. 3770 would cost less than $500,000 over the 2026-2030 period for DOJ to update its policies and procedures to comply with the bill’s requirements. Any related spending would be subject to the availability of appropriated funds.

The CBO staff contact for this estimate is Jeremy Crimm. The estimate was reviewed by H. Samuel Papenfuss, Deputy Director of Budget Analysis.