State Firearms Dealer Licensing Enhancement Act

This bill creates a federal grant program to help states and tribal governments improve their licensing systems for firearms dealers. To qualify for funding, a state or tribe must already require dealers to hold a license, pass an application process, renew their license every three years, and submit to inspections. If a dealer breaks the rules, the state must be able to suspend or revoke their license and impose fines or criminal charges. The Attorney General will award up to $2.5 million per year in competitive grants to eligible applicants who submit plans for developing or improving these programs. Recipients must report annually on the number of inspections, violations, and licenses issued, renewed, or revoked, while the Attorney General will provide a public report on all grants awarded and denied.