A major legal fight over one of the Biden-era ATF rules just took a sharp turn. And it’s a big one.
According to Gun Owners of America and the Gun Owners Foundation, the Department of Justice has officially moved to dismiss its appeal in the ongoing case challenging the ATF’s “Engaged in the Business” rule.
This is welcome news from DOJ, and helps fulfill President Trump’s campaign promise to get rid of Biden’s universal background checks.
GOA’s preliminary injunction now returns to the district court, where we hope Biden’s evil rule will be vacated once and for all. 👏👏👏 https://t.co/2KSzYxUR96
— Gun Owners of America (@GunOwners) April 16, 2026
That rule, pushed during the Biden administration, aimed to significantly expand who qualifies as a firearm “dealer,” and by extension, who would be required to obtain a federal license and run background checks.
Critics argued it went much further than that.
Under the rule, even a single private firearm sale could potentially trigger federal scrutiny, raising serious concerns about how broadly the ATF could interpret “engaged in the business.”
That’s what led to the lawsuit.
GOA and GOF, alongside attorneys general from Texas, Louisiana, Utah, and Mississippi, secured a preliminary injunction blocking enforcement of the rule, at least temporarily.
Now, with DOJ stepping back and asking the Fifth Circuit to drop the appeal, that injunction stays in place. And the case heads back to district court. That’s where the next phase begins.
GOA says it plans to push for a permanent ruling that would strike the regulation down entirely, arguing the rule was an overreach designed to move the country closer to universal background checks without going through Congress.
Senior Vice President Erich Pratt called the DOJ’s move “a massive step,” framing it as a reversal of what he described as an attempt to criminalize private gun sales.
Meanwhile, GOF’s John Velleco said the decision “sets the stage” for a broader legal victory and warned against future efforts to reinterpret federal law in similar ways.
From a legal standpoint, the key takeaway is this: The rule isn’t gone yet. But it’s no longer being actively defended at the appellate level, and enforcement remains blocked for now.
From a policy standpoint? This fight isn’t over.
But for gun owners watching closely, things are trending in the right direction. As always, stay tuned for updates.
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