House passes bill barring separate merchant codes for firearms retailers after sharp debate

The House passed H.R.1181 on July 14, 2026, a bill that prohibits payment card networks and covered entities from assigning merchant category codes (MCCs) that single out firearms retailers, after several hours of debate and a failed motion to recommit.

Supporters framed the bill as a guardrail for consumer privacy. “My bill preserves two fundamental rights, the right to privacy and the right to bear arms,” Representative Riley Moore (R–WV), the bill’s sponsor, told the chamber, arguing that a distinct MCC would function as a de facto registry and could be misused. Chairman French Hill (R–AR) and other backers said the measure prevents financial surveillance of lawful activity while preserving existing anti-money-laundering and suspicious-activity-reporting obligations.

Opponents said the bill undercuts tools states and financial institutions have begun using to identify suspicious patterns linked to gun trafficking and mass shootings. “I strongly oppose this bill, because it limits efforts to detect and investigate gun violence,” Representative Maxine Waters (D–CA), the ranking member on Financial Services, said during floor debate, noting examples where payment patterns preceded mass attacks.

The debate drew a broad cross-section of voices. Representative Bennie Thompson (D–MS) and others warned MCC bans could hinder law-enforcement leads; Representative Jim Jordan (R–OH) and supporters argued Fourth Amendment concerns counsel against creating codes that could enable government surveillance of constitutionally protected purchases. Representative Darren Soto (D–FL) and Representative Greg Frost (D–FL) emphasized the need for tools to detect mass-shooting warning signs, while Representative Richard Hudson and others argued the bill preserves privacy while allowing law enforcement to use legal processes when warranted.

Procedurally, the House first considered the bill under the terms of H.Res.1423. A motion to recommit was offered and defeated on the floor. The recorded votes on the motion and final passage were taken under the House’s electronic voting procedures.

The bill’s passage sends H.R.1181 to the Senate. Supporters called it a national standard to prevent a patchwork of state actions from creating databases of firearm purchasers; opponents said they will push enforcement and oversight amendments in subsequent steps and raised concerns that the federal preemption language would nullify state efforts aimed at preventing trafficking.

Outcome and next steps: The House adopted H.R.1181 and will transmit the measure to the Senate for further consideration.