Politics and Government News

NRA declares bankruptcy, plans to incorporate in Texas

The National Riffle Association of America headquarters.
The National Riffle Association of America headquarters on Aug. 6, 2020, in Fairfax, Va. The nation's most powerful gun-rights organization has filed for bankruptcy.
Olivier Douliery | AFP via Getty Images 2020

The National Rifle Association announced Friday it has filed for bankruptcy and will seek to incorporate the nation’s most politically influential gun-rights group in Texas instead of New York.

The announcement made on the NRA's website comes months after New York’s attorney general sued the organization over claims that top executives illegally diverted tens of millions of dollars for lavish personal trips, no-show contracts for associates and other questionable expenditures.

The coronavirus pandemic has also upended the NRA, which last year laid off dozens of employees, canceled its national convention and scuttled fundraising. Still, the NRA claimed in announcing the move that the organization was “in its strongest financial condition in years.”

The NRA said it filed for Chapter 11 bankruptcy in a Dallas federal court.

“The move will enable long-term, sustainable growth and ensure the NRA’s continued success as the nation’s leading advocate for constitutional freedom – free from the toxic political environment of New York,” the NRA said in a statement.

The gun-rights group boasts about 5 million members. Though headquartered in Virginia, the NRA was chartered as a nonprofit in New York in 1871 and is incorporated in the state.