Fire Sale Loophole Closing Act of 2025

Key Points

• This bill stops gun dealers from selling off their remaining stock as private citizens if the government takes away their business license. It aims to prevent guns from being sold without background checks after a store is forced to close.
• If a dealer loses their license or is denied a renewal, they would be banned from moving their store inventory into their own personal collection. They also could not give those guns to their employees or business partners to avoid the law.
• Dealers would have 30 days to sell their remaining inventory to another licensed gun dealer or a law enforcement agency. After that time, they are not allowed to transfer the guns to anyone else.
• If a dealer does move a business gun into their personal collection, they must wait at least one year before they can sell it. This is meant to stop people from quickly flipping inventory to avoid background check requirements.
• People who knowingly break these rules could face up to one year in prison. If they intentionally ignore the law, the prison sentence could increase to five years.

Impact Analysis

Govbase has not yet run an impact analysis on this legislation.