Congress·In Committee·H.R. 7135

Prevent Illegal Gun Resales Act

Congress Proposes Higher Fees and Stricter Oversight for Gun Dealers to Stop Illegal Sales

6 months ago·View on Congress.gov

Part of: Lawmakers Propose Stricter Security and Record-Keeping for Gun Dealers

Legislative Progress

House

Senate

President

Law

Key Points

This bill would significantly raise the cost of getting a federal license to sell guns. For many dealers, the application fee would jump from $50 to $2,000. This change is intended to ensure that only serious, professional businesses are operating in the firearms market.
Gun stores would be required to create and follow specific plans to prevent 'straw purchases,' which happen when someone buys a gun for a person who is legally prohibited from owning one. If a dealer fails to follow their own safety plan, they could face a $5,000 fine or have their license suspended.
The government would label certain sellers as 'high risk' if their guns are frequently used in crimes or if they have a history of breaking rules. These dealers would be required to record video and audio of every sale and undergo regular inspections by federal agents to ensure they are following the law.
Dealers would have to respond to police requests to trace 'crime guns' within 24 hours. If a dealer has five or more guns stolen or used in crimes within a single year, they must upgrade their security and record-keeping systems, including installing surveillance cameras.
The bill creates a new federal crime for gun trafficking with a maximum prison sentence of 15 years. It also allows the government to fine dealers up to $50,000 for each gun they sold that was later used in a crime if the dealer had reason to believe the sale was suspicious.
A new 'Gun Trafficking Awareness Program' would be created to train gun store employees on how to spot illegal buyers. Dealers who accidentally sell to traffickers but didn't mean to break the law could be required to join this program to keep their business open.

Gun PolicyCriminal JusticeSmall Business

Impact Analysis

Personal Impact

How this policy affects specific groups of people

Negative Impacts(2)

Small Business Owner

Hurts

Gun store owners would face dramatically higher federal licensing fees — in many cases jumping from $50 to $2,000 — which could be a serious financial burden, especially for smaller shops. On top of that, dealers would need to invest in surveillance cameras, electronic record-keeping systems, and new anti-trafficking procedures. Dealers labeled as "high risk" would face even more requirements and regular government inspections, adding ongoing compliance costs.

Criminal Record

Hurts

The bill creates a new federal trafficking offense with penalties of up to 15 years in prison for anyone who transfers two or more firearms knowing or having reason to believe the recipient is a felon. People with felony convictions would face an even harder time obtaining firearms illegally, as the dealers and supply chains they rely on would be under much tighter scrutiny and harsher penalties.

Mixed Impacts(1)

Gun Owner

Neutral

Law-abiding gun buyers could benefit from reduced illegal trafficking and straw purchases, which fuel gun violence in communities. However, the higher costs imposed on dealers could be passed along to customers in the form of higher prices for firearms and ammunition. Some smaller dealers may close altogether, reducing where people can legally buy guns, particularly in rural areas.

Milestones

2 milestones2 actions

Jan 16, 2026House

Referred to the House Committee on the Judiciary.

Jan 16, 2026

Introduced in House

The bill was officially filed and given a number. It now enters the legislative queue.

Votes

No votes have been recorded for this legislation yet.

Related News

2 articles

Florida Politics·about 2 years ago

Delegation for 4.9.24: Sham elections — rap battle — gun resales — trans athletes

Rep. Maxwell Frost introduced the Prevent Illegal Gun Resales Act with Reps. Robin Kelly and Delia Ramirez. The bill increases license requirements for gun retailers and creates a 'high-risk dealer' classification for sellers with histories of violations or crime-linked traces.

Center

Politico·7 months ago

Frost, Alsobrooks, Van Hollen, Wyden Introduce Bill to Reverse Gun Silencer Tax Cuts

As reported in Politico’s Morning Tax, Rep. Maxwell Frost is introducing a series of bills aimed at the gun industry's fiscal regulations. This includes the Prevent Illegal Gun Resales Act, which proposes a significant increase in federal licensing fees for firearm dealers to $2,000.

Center Left

Source Information

Document Type

Congressional Bill

Official Title

Prevent Illegal Gun Resales Act

Bill NumberHR 7135

Congress119th Congress

ChamberHouse of Representatives

Latest ActionReferred to the House Committee on the Judiciary.

Data Sources

Congress.gov

Official legislative information

Sponsor

Analysis generated by AI. Always verify with official sources.