ATF Private Sale Rule Blocked

A federal court injunction blocking the ATF's expanded dealer licensing rule is staying put after the Trump administration dropped its appeal.

State of play: The rule, finalized in April 2024, redefined when someone is "engaged in the business" of selling firearms — a threshold that triggers federal dealer licensing and background check requirements. Courts found it likely exceeded ATF's authority and improperly put the burden of proof on gun owners.

Catch up quick:

• May 2024: Texas AG Ken Paxton leads a multistate coalition suing ATF over the rule
• Courts issue a temporary restraining order, then a preliminary injunction blocking enforcement
• Trump DOJ moves to dismiss the Biden administration's appeal of that injunction
• Case now returns to district court for final resolution

The legal question: Congress has always drawn a line between licensed dealers and private individuals selling from their personal collections. The ATF rule blurred that line by creating criteria around "repetitive" sales and profit intent — language critics called vague enough to sweep up ordinary gun owners who sell a few rifles from their safe.

"This Biden-era rule was a blatant attempt to violate our Constitution and criminalize law-abiding Americans for engaging in lawful private firearm sales." — Texas AG Ken Paxton, April 24, 2026

Reality check: The injunction currently applies in the plaintiff states. If you're in Idaho, private sales between individuals remain unchanged. No dealer license, no mandatory background check on a transaction between two private parties. That's how it was before the rule, and that's how it stays while litigation runs its course.

What to watch: The case heads back to U.S. District Court for a final judgment. A permanent block is the likely endgame given the Trump DOJ's posture, but "likely" isn't "done." Gun Owners of America is a co-plaintiff, so this will be litigated aggressively to a conclusion.