US SB2088

Requires persons engaged in the business of destroying firearms to obtain a federal license from the Attorney General, adding "firearm destroyer" as a new category of licensed dealer under federal firearms law

Defines "covered method of firearm destruction" as rendering a firearm and all its parts, attachments, and accessories unable to be restored to working condition and reduced to scrap

Mandates licensed firearm destroyers submit annual reports to the ATF on the number of firearms destroyed, including breakdowns by source (government entities vs. others) and destruction method, with reports made publicly available

Exempts local, state, federal, and tribal law enforcement agencies and government entities from the licensing requirement when they destroy firearms themselves

Establishes a grant program through the ATF to provide funding to state, local, and tribal governments to pay licensed dealers to destroy firearms using covered destruction methods, with the Attorney General required to issue implementing regulations within 180 days of enactment