Sec. 3. Reauthorization and improvements to NICS
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Section 103 of the NICS Improvement Amendments Act of 2007 ( 34 U.S.C. 40913 ) is amended— by redesignating subsections (e), (f), and
(g)as subsections (f), (g), and (h), respectively; by amending subsection (f), as so redesignated, to read as follows: There are authorized to be appropriated to carry out this section $20,000,000 for each of fiscal years 2026 through 2030. ; and by inserting after subsection
(d)the following: All grants awarded by the Attorney General under this section shall be subject to the following accountability provisions: In this subsection, the term unresolved audit finding means a finding in the final audit report of the Inspector General of the Department of Justice that the audited grantee has utilized grant funds for an unauthorized expenditure or otherwise unallowable cost that is not closed or resolved within 12 months from the date when the final audit report is issued. Beginning in the first fiscal year beginning after the date of enactment of the Protecting Communities and Preserving the Second Amendment Act of 2025 , and in each fiscal year thereafter, the Inspector General of the Department of Justice shall conduct audits of recipients of grants under this section to prevent waste, fraud, and abuse of funds by grantees. The Inspector General shall determine the appropriate number of grantees to be audited each year. In awarding grants under this section, the Attorney General shall give priority to eligible applicants that did not have an unresolved audit finding during the 3 fiscal years before submitting an application for a grant under this section. . The NICS Improvement Amendments Act of 2007 ( 34 U.S.C. 40902 et seq. ) is amended— in section 102(b)(1) ( 34 U.S.C. 40912(b)(1) )— in subparagraph (A), by striking subparagraph
(C)and inserting subparagraph
(B); by striking subparagraph (B); and by redesignating subparagraph
(C)as subparagraph (B); in section 103 ( 34 U.S.C. 40913 )— in subsection (a)(1), by striking and subject to section 102(b)(1)(B) ; and in subsection (e)(2)(B)(ii)(II), by striking section 102(b)(1)(C) and inserting section 102(b)(1)(B) ; and in section 104(d) ( 34 U.S.C. 40914(d) ), by striking section 102(b)(1)(C) and inserting section 102(b)(1)(B) .
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