Clean Hands Firearm Procurement Act

This legislation mandates that the Attorney General, acting through the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), annually publish a list of "covered firearms dealers." These dealers are specifically defined as those from whom at least 25 firearms have been traced to a crime within three years of their retail sale, in at least two of the preceding three calendar years. The primary goal is to identify and restrict federal engagement with dealers whose firearms are frequently used in crimes shortly after purchase. A significant provision of the bill prohibits any federal agency from entering into contracts with a licensed dealer who has been identified as a covered firearms dealer in the current or two preceding calendar years. This aims to prevent federal funds from supporting businesses linked to a high volume of short time-to-crime firearms. However, a limited waiver authority exists, allowing the Attorney General to grant an exception for national security purposes upon request from the Secretary of Defense or Homeland Security, with immediate notification to congressional committees.