TRACE Act

The TRACE Act requires all new firearms manufactured in the U.S. to include a second, hidden serial number (inside the receiver or visible only under infrared light) within 12 months of enactment. It extends the retention period for background check records from 24 hours to 180 days and mandates that licensed firearm dealers conduct regular physical inventory checks of their stock. The bill also removes longstanding funding restrictions in federal appropriations laws that previously prohibited using funds to implement these measures. These changes directly affect firearm manufacturers, licensed dealers, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), which must issue implementing regulations within 180 days.