Statements on Introduced Bills and Joint Resolutions

Floor Speech

Date: June 26, 2025
Location: Washington, DC

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Mr. PADILLA. Mr. President, I rise to introduce the Clean Hands Firearm Procurement Act.

This legislation addresses a critical need to ensure that Federal resources do not inadvertently support gun dealers whose business practices may contribute to the proliferation of firearms used in criminal activities.

The Clean Hands Firearm Procurement Act would withhold federal contracts from Federal Firearm Licensees (FFLs) who have been listed in the Bureau of Alcohol, Tobacco, Firearms, and Explosives' (ATF) Demand 2 Program twice in the preceding 3 calendar years. The Demand 2 Program targets gun dealers who have sold 25 or more firearms within a year that are subsequently traced to crimes within 3 years of their sale.

Under this act, dealers identified under the Demand 2 Program will be prohibited from entering into Federal contracts for a period of 3 years following their last appearance on the list. However, the Attorney General would have the discretion to waive this prohibition for the Departments of Defense and Homeland Security if it is deemed necessary to protect national security.

Over the past two decades, the ATF's Demand 2 Program has been instrumental in identifying gun dealers whose sales practices may be contributing to the diversion of firearms to criminal activities. While the vast majority of FFLs operate responsibly, a small fraction--about 2 percent--of these dealers have been shown to be a significant source of crime guns.

Between 2021 and 2023, only approximately 1,500 of the Nation's 75,000+ FFLs were subject to the Demand 2 Program. This small group of dealers has a disproportionate impact on gun violence in our communities. It is deeply troubling that some of these dealers have continued to receive lucrative Federal contracts despite their track record.

The Clean Hands Firearm Procurement Act aims to incentivize better business practices among gun dealers by ensuring that those with a history of contributing to gun violence through irresponsible sales are not rewarded with Federal contracts. This bill is a critical step towards reducing gun violence and ensuring that Federal procurement practices do not inadvertently support the diversion of firearms to criminal activities.

Americans deserve to feel safe in their communities, and our government has a responsibility to ensure that its resources are used to promote public safety, not undermine it. By passing this legislation, we can take meaningful action to address the gun violence epidemic that continues to plague our Nation.

Public safety is paramount, and this bill represents an important measure to strengthen our efforts in combating the illegal use of firearms. I look forward to working with my colleagues to pass the Clean Hands Firearm Procurement Act as swiftly as possible.

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