Federal Firearm Buy-Back Initiative Act

Federal Firearm Buy-Back Initiative Act - Directs the Attorney General to establish a program under which the Attorney General will contribute up to 50 percent of the funds needed to provide merchandise, certificates for merchandise or services, or other non-cash incentives to individuals who turn in firearms under State, local, or private firearm buy-back programs or who provide information to local law enforcement agencies that leads to the arrest and conviction of individuals who have committed a crime with the use of a firearm. Authorizes the Attorney General to: (1) agree to contribute an amount that is no greater than the State, local, and private funds committed to the particular program; and (2) set such other terms to ensure that each program is operated in an efficient and bona fide manner consistent with the interests of law enforcement. Prohibits the Attorney General from prescribing the terms under which such programs will accept firearms in exchange for any offered incentive.

Directs the Attorney General to require that: (1) all firearms that are turned in be destroyed; and (2) a program agree to provide only non-cash incentives.

Terminates the Attorney General's program on September 30, 1995. Authorizes appropriations. Requires the Attorney General to report on the effect of the firearm buy-back programs in reducing the incidence of crime.