State Firearms Dealer Licensing Enhancement Act

This bill creates a federal grant program to help states and tribal governments improve their licensing systems for firearms dealers. To qualify for funding, a state must have laws requiring dealers to hold licenses valid for no more than three years, complete an application process, and allow for inspections with penalties for noncompliance. The Attorney General will award up to $2.5 million per year on a competitive basis to eligible applicants who submit detailed plans for developing or improving their programs. Recipients must provide annual reports on inspection numbers, violations, and license status, while the Attorney General must report grant details and denial reasons to Congress.