H.R. 7827: Stop Militarizing Our Streets Act of 2026

This bill, titled the Stop Militarizing Our Streets Act of 2026, aims to modify the way the Department of Defense (DoD) handles the sale and procurement of certain firearms and ammunition. Below is an overview of the key provisions and changes introduced by the bill:

Prohibitions on Sales and Procurement

The bill places restrictions on the DoD regarding the following:

• Sales in the Commercial Marketplace: The Secretary of Defense and operators of government-owned plants are prohibited from selling military-grade assault weapons and covered ammunition to any dealer in the commercial marketplace.
• Procurement Limits: The Secretary of Defense cannot procure items from any dealer or manufacturer that sells military-grade assault weapons or covered ammunition in the commercial marketplace.

Regulations on Other Weapons and Ammunition

The bill also sets additional requirements relating to all other firearms and ammunition (not classified as military-grade):

• Sales Restrictions: The Secretary of Defense is restricted from selling firearms or ammunition to dealers who do not meet certain federal requirements.
• Procurement Restrictions: The Secretary cannot procure from dealers or manufacturers who transgress these requirements.

Dealer Requirements

To be eligible to sell or provide firearms and ammunition to the DoD, dealers must:

• Possess a valid federal license for firearms and ammunition.
• Have no more than 24 firearms traced to crimes over the last three years.
• Adopt a minimum code of conduct, which includes implementing security measures and background checks.
• Keep electronic records of sales and inventory.

Inspection and Reporting

Dealers must report any compliance inspection results from the Bureau of Alcohol, Tobacco, Firearms and Explosives to any manufacturers or wholesalers from whom they obtain firearms or ammunition.

Moreover, government-owned plants producing firearms or ammunition must submit detailed annual reports encompassing customer details, sales revenue, and measures taken to prevent illegal sales.

Licensing for Ammunition Dealers

The bill mandates the Attorney General to make licenses available for ammunition dealers. These dealers must meet similar requirements as those for firearms dealers, ensuring that they can access the national instant criminal background check system for ammunition sales.

Compliance and Penalties

The bill includes enforcement provisions wherein dealers violating these regulations may face penalties, including disqualification from sales or procurement opportunities outlined in the bill.

Implementation and Cooperation

The Attorney General, in coordination with the Secretary of Defense, will monitor compliance with all provisions of the bill. They may also share relevant crime gun trace data as necessary.

Relevant Companies

• Ruger (RGR): This company manufactures firearms, and the bill's restrictions may affect its sales strategies, particularly concerning military-grade weapons.
• Smith & Wesson Brands (SWBI): The company may face implications regarding its sales of firearms that fall under the military-grade category defined in the bill.
• American Outdoor Brands (AOUT): As a wholesaler of outdoor products including firearms, the restrictions on procurement might impact their inventory and sales practices.