Protecting Communities and Preserving the Second Amendment Act of 2025

This section reauthorizes appropriations for the NICS Improvement Amendments Act of 2007, allocating $20 million annually for fiscal years 2026 through 2030. It also adds accountability provisions, requiring the Inspector General of the Department of Justice to audit grant recipients annually to prevent waste, fraud, and abuse, and prioritizing grants for applicants without unresolved audit findings.

Mandates the Attorney General to issue guidance within 45 days on identifying and sharing relevant federal records with NICS. Federal agencies possessing such records must prioritize their submission to NICS regularly. Agency heads must report to the Attorney General within 60 days on their record possession and implementation plans, with the Attorney General resolving any disputes on record relevance.

This section amends Title 18 to redefine "has been adjudicated mentally incompetent or has been committed to a psychiatric hospital." It specifies that such an adjudication requires a formal order or finding by a judicial or adjudicative body after a hearing with actual notice and opportunity for counsel, or a knowing waiver. It lists specific findings (e.g., danger to self/others, not guilty by reason of insanity, involuntary treatment) that qualify. It explicitly excludes observation, voluntary admissions, or orders that have expired, been set aside, or where relief from disabilities has been granted. It also broadens "psychiatric hospital" to include various mental health facilities.

Amends Title 38 (Veterans Affairs) to state that a person receiving VA benefits who is deemed mentally incapacitated or incompetent shall not be considered "adjudicated mentally incompetent" for federal firearm prohibition purposes (18 U.S.C. 922(d)(4) or (g)(4)) without a judicial order or finding that they are a danger to themselves or others. This specifically targets the VA's practice of reporting beneficiaries with fiduciaries to NICS without a judicial hearing.

Requires federal agencies to submit annual reports to Congress detailing their NICS record submission efforts, obstacles, and plans for improvement, including measures for notice and relief from disabilities. Agencies can submit a certification instead of a full report if they meet certain criteria for record submission and updating. It also mandates annual reports from the Attorney General to Congress on federal firearms prosecutions, including cases not charged, reasons for non-charge, plea agreements, and NICS denial prosecutions.

Establishes a "Nationwide Project Exile Expansion" program within 90 days in specific high-homicide jurisdictions. This program mandates coordination with state/local law enforcement, referral of covered firearms provision violations for federal prosecution, establishment of multijurisdictional task forces for straw purchasing, designation of Assistant U.S. Attorneys for firearms cases, and charging the most serious applicable offense. Authorizes $15 million annually for FY2026-2028 for AUSA and ATF agent salaries and expenses.

Establishes a "Felon and Fugitive Firearm Task Force" within the Department of Justice, chaired by the Deputy Attorney General, to strengthen investigation and prosecution of convicted felons and fugitives attempting to illegally purchase firearms. The task force will provide direction, recommend resource allocation, and enhance cooperation among federal, state, and local authorities. It also authorizes the use of up to $10 million annually from the Department of Justice Assets Forfeiture Fund for FY2026-2030 for these investigations and prosecutions, with a 5% cap for administrative costs.

Prohibits the Department of Justice or its law enforcement agencies from conducting operations where a federal firearms licensee is encouraged to sell a firearm to an individual known or reasonably believed to be purchasing for an illegal purpose (straw purchase), unless the Attorney General, Deputy Attorney General, or Assistant Attorney General for the Criminal Division personally reviews and approves the operation in writing, ensuring sufficient safeguards to prevent firearms from being transferred to third parties without lawful interdiction.

Amends 18 U.S.C. 924(a)(1) to increase the maximum penalty for making a false statement in connection with a firearm purchase (lying on a background check form) from 5 years to 10 years imprisonment.

Amends 18 U.S.C. 924(a)(8) to include violations related to subsection (n) of section 922, which prohibits individuals who have been discharged from the Armed Forces under dishonorable conditions from possessing firearms. Previously, this section only covered violations related to subsections (d) or (g) of section 922.

Directs the Attorney General to instruct the Director of the National Institute of Justice to conduct a peer-reviewed study, jointly with the National Academy of Sciences, on the causes of mass shootings. The study will examine psychological factors, the impact of violent video games, mental illness, availability of mental health resources, familial relationships, exposure to bullying, and "copycat" behavior. A report detailing findings is due to Congress within one year of the study's commencement.

Requires the Director of the Office of Management and Budget (OMB) to submit an annual report to Congress detailing all ammunition purchases, solicitations, expenditures, rounds expended, current stockpiles, and estimated future needs for each federal agency during the preceding year.

Amends the NICS Improvement Amendments Act of 2007 to establish a tiered reduction in Byrne Justice Assistance Grant (JAG) funds for states that fail to provide mental health records to NICS. States that do not provide at least 90% of required records or lack a statute requiring such provision and implementing a relief from disabilities program will have 5% of their Byrne JAG funds withheld starting 18 months after enactment. After 5 years, this withholding increases to 10% if the state still lacks the required statute.

Amends 18 U.S.C. 922(b)(3) to allow licensed dealers to sell or transfer any firearm (not just rifles/shotguns) to residents of other states, provided the transaction complies with laws in both the state of transfer and the transferee's state of residence. It also clarifies that licensed dealers can sell, transfer, or deliver firearms at temporary locations in any state, and that licensed dealers can transfer firearms or ammunition to other licensed dealers at any location. It also clarifies residency for military personnel and federal officers stationed abroad.

Amends 18 U.S.C. 926A to strengthen protections for individuals transporting firearms or ammunition interstate for lawful purposes. It defines "transport" broadly to include temporary lodging, stops for food/fuel, emergencies, etc. It specifies that firearms must be unloaded and inaccessible (e.g., in a locked container in the trunk or secured by a safety device if no separate compartment). Ammunition must be unloaded and in a locked container. It also establishes that a person cannot be arrested or detained for violating state laws related to possession/transportation unless there is probable cause/reasonable suspicion of non-compliance with these federal protections. If this section is asserted as a defense in a criminal proceeding, the government bears the burden of proof, and a prevailing defendant is awarded reasonable attorney's fees.

Amends the Omnibus Crime Control and Safe Streets Act of 1968 to require the Attorney General to compare potential grant awards under Part E (Byrne JAG) with grants awarded under Part A or T to prevent duplicate awards for the same purpose. If duplicate grants are awarded, the Attorney General must report to the Judiciary Committees of both chambers, listing the duplicate grants, their total dollar amount, and the reason for the duplication.

Requires the Attorney General to establish or maintain firearms trafficking task forces in the Houston, Phoenix, Dallas, and Los Angeles Field Divisions of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Each task force must consist of no fewer than 12 special agents and focus on investigating firearms trafficking, particularly violations related to illegal straw purchasing and firearms smuggling (18 U.S.C. 932 and 933).