No SmartPay for Anti-2A Companies Act

Bill Summary: H.R. 70 - No SmartPay for Anti-2A Companies Act

Overview

The No SmartPay for Anti-2A Companies Act is a targeted legislative proposal designed to prevent the federal government from contracting with commercial payment processing agencies that categorize firearms retailers using specific "merchant category codes" (MCCs). The bill aims to ensure that government-funded payment systems do not support entities that the sponsors believe are unfairly targeting the legal sale of firearms.

Main Purpose and Intent

The primary intent of this bill is to protect the Second Amendment (2A) rights of gun retailers by removing federal financial support (via the SmartPay Program) from payment processors that implement specific identification codes for gun stores.

In the payments industry, Merchant Category Codes are used to identify the type of business a merchant is. The bill targets processors that use these codes specifically for firearms retailers, often seen as a mechanism used by financial institutions to track, restrict, or deny services to those businesses.

Key Provisions

• Contracting Prohibition: The bill explicitly prohibits the Administrator of General Services from awarding any contract under the SmartPay Program for a commercial payment system if that system utilizes a payment processing agency that has implemented a merchant category code for gun retailers.
• Prospective Application: The Act does not apply retroactively. Any contracts awarded prior to the enactment of this Act remain valid and are not affected by these new restrictions.

Who is Affected?

• General Services Administration (GSA): The Administrator would be legally barred from entering into certain contracts.
• Payment Processing Agencies: Companies providing payment systems to the federal government may lose eligibility for SmartPay contracts if they maintain specialized codes for firearm retailers.
• Gun Retailers: The bill is intended to benefit these businesses by discouraging financial institutions from using categorization tools that could lead to "de-banking" or restrictions on payment processing.

Procedural Status and Timeline

• Introduced: January 3, 2025
• Current Status: The bill has been referred to the House Committee on Oversight and Government Reform for further review.

Quick Reference Table
| Feature | Detail |
| :--- | :--- |
| Bill Number | H.R. 70 (119th Congress) |
| Primary Target | Commercial payment systems under the SmartPay Program |
| Core Restriction | Prohibits contracts with processors using firearm merchant category codes |
| Effective Date | Applies only to contracts awarded after enactment |