HR 45: Firearm Industry Non-Discrimination Act Reshapes Federal Contracting Landscape

Introduced in early 2025 by Representative Jack Bergman, the Firearm Industry Non-Discrimination Act—formally known as HR 45—has quickly gained momentum with 83 congressional cosponsors. This legislation represents a significant shift in how the federal government conducts business with private contractors, introducing mandatory protections for the firearms and ammunition sector. The implications extend far beyond the gun industry, affecting federal procurement practices and corporate compliance frameworks across multiple sectors.

Core Protections: Ending Discrimination in Federal Contracts

At its foundation, HR 45 establishes a clear principle: federal agencies cannot contract with companies that maintain discriminatory policies against firearm manufacturers and dealers. The bill requires contract clauses mandating that primary contractors certify they hold no policies or practices that disadvantage firearm entities or their trade associations. This certification isn’t a one-time declaration—contractors must commit to avoiding discriminatory actions throughout the contract period.

The legislation recognizes that discrimination can occur through both active policies and passive business practices. This dual approach closes potential loopholes where companies might avoid explicit anti-firearm statements while still blocking industry participants through indirect means.

Compliance Obligations and Enforcement Mechanisms

The enforcement architecture of HR 45 extends through the entire contracting chain. Prime contractors face restrictions on awarding subcontracts exceeding 10% of the total contract value to entities that haven’t certified non-discrimination status. This threshold requirement prevents contractors from circumventing the law by fragmenting work across multiple small subcontractors.

Violations carry substantial consequences. The federal government can terminate contracts for default, initiating suspension and debarment proceedings against non-compliant contractors. These actions effectively bar companies from future federal work, creating powerful incentives for compliance. The bill’s enforcement mechanism transforms corporate compliance from a voluntary consideration into a mandatory business requirement, affecting how companies structure vendor relationships and supply chains.

Scope and Exceptions

HR 45 applies to all federal contracts awarded after the law takes effect. However, the legislation includes a critical exception: sole-source contracts requiring no competitive bidding fall outside these requirements. This carve-out acknowledges instances where the government has no alternatives and competition-based enforcement mechanisms don’t apply.

The law defines key terms with precision. “Discrimination” is framed not as subjective judgment but as decision-making based on incomplete criteria rather than case-by-case evaluation or quantifiable standards. “Firearm entities” encompass licensed manufacturers, dealers, and importers of firearms and ammunition, including producers of firearm safety devices. These definitions create clarity for contractors navigating compliance.

Market Implications for Firearm Industry Companies

The legislation’s practical impact varies across the relevant sector. Sturm, Ruger & Company (RGR), a major firearms manufacturer, stands positioned to benefit if HR 45 facilitates expanded federal procurement contracts for weapons systems and related equipment. American Outdoor Brands (DAO), which produces firearms and related products, faces similar opportunities to access federal contracts previously complicated by procurement discrimination.

Technology companies face more nuanced implications. Axon Enterprise (AXON), while primarily focused on law enforcement technology, could see its firearm safety-related partnerships and federal contracts gain protection under the legislation. Even tangentially-affected companies must now evaluate their procurement policies for unintentional discrimination that might trigger debarment.

Looking Ahead

HR 45 represents a pivotal moment in federal contracting policy, forcing compliance officers across industries to audit their vendor selection processes and contractual language. The law doesn’t merely protect one industry—it establishes a broader principle that federal procurement cannot be weaponized to discriminate against legal sectors, regardless of political disagreement. For companies in and around the firearm industry, the legislation removes significant regulatory uncertainty surrounding federal contract eligibility.

Disclaimer: This analysis is for informational purposes and should not be construed as legal or investment advice. Interested parties should consult legal counsel regarding compliance obligations under HR 45.