H.R. 1041 would prohibit the Department of Veterans Affairs (VA) from reporting certain information to the Department of Justice (DOJ) for use in the National Instant Criminal Background Check System (NICS). That system is used by licensed firearms dealers to determine whether a person can legally purchase a firearm.

VA appoints fiduciaries to manage benefits for people who have been determined unable to manage benefits on their own. Under current law, in some cases, VA reports that information to the NICS. As a result of that reporting, a person may be deemed ineligible to purchase a firearm. (The Full-Year Continuing Appropriations and Extensions Act, 2025, prohibits the department from making such reports in the current fiscal year.)

Under the bill, VA would be prohibited from transmitting information to the NICS about a person solely because a fiduciary manages their VA benefits. The department could make such a report, however, if a judge finds that the person poses a danger to themselves or others. VA must also notify DOJ that any information previously transmitted about people who use a fiduciary no longer applies. CBO estimates that implementing the bill could reduce administrative costs by decreasing VA’s reporting to the NICS. Conversely, VA could incur additional costs for seeking judicial findings that a person poses a danger and should be reported to the NICS. CBO estimates that, in either case, the net change in spending would not be significant. Any related spending would be subject to appropriation.

The CBO staff contact for this estimate is Logan Smith. The estimate was reviewed by Christina Hawley Anthony, Deputy Director of Budget Analysis.