Keeping Gun Dealers Honest Act of 2025

The Keeping Gun Dealers Honest Act of 2025 requires gun dealers to undergo three federal inspections annually (up from one) and increases penalties for violations, raising the maximum prison sentence from one to five years. It mandates secure firearm storage at dealerships and imposes civil fines of up to $10,000 per violation for noncompliance, including for transferring armor-piercing ammunition. The law allows the federal government to suspend a dealer's license or require a physical inventory of firearms if they unlawfully transfer a gun or 10+ crime guns are traced to them. Additionally, it mandates hiring 80 new ATF staff and requires biennial congressional reports on implementation.