S. 2088 — Firearm Destruction Licensure Act of 2025

This section establishes a federal firearms license requirement for persons engaged in the business of destroying firearms (i.e., firearm destroyers, excluding government entities). It (1) defines "firearm destroyer," "engaging in the business" of destroying firearms (i.e., receiving a firearm to destroy it), and "covered method of firearm destruction" (i.e., rendering the firearm and components unrestorable and reduced to scrap); (2) prohibits unlicensed persons from engaging in that business under 18 U.S.C. §922(a)(1)(C), with associated civil penalties; (3) authorizes the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) to license firearm destroyers, including requirements to use covered methods for government-submitted firearms (unless otherwise agreed) and to publicly disclose related charges; (4) directs licensed firearm destroyers to submit annual reports to ATF beginning one year after enactment on firearms destroyed (including sources, government-submitted firearms using covered methods, and others), with ATF required to publicly release individual reports and aggregates; and (5) authorizes grants to state, local, and Tribal governments beginning one year after enactment to pay licensed dealers for covered-method destruction, with such sums as necessary appropriated.