A federal court in Texas has struck down the Bureau of Alcohol, Tobacco, Firearms and Explosives’ unlawful “engaged in the business” rule, granting summary judgment to the plaintiffs and vacating the rule nationwide. This is a major victory for gun owners, for constitutional rights, and for every American who rejects the federal government’s continuing effort to turn ordinary, lawful firearm activity into a regulatory trap.
In its summary judgment ruling, the Court stated:
“[F]or the reasons stated in this Court’s June 11, 2024 Order granting Plaintiffs’ Motion for Preliminary Injunction (ECF No. 70), the Court concludes that Plaintiffs have succeeded on the merits of their claims, brought under the Administrative Procedure Act, against the challenged Final Rule: Definition of ‘Engaged in the Business’ as a Dealer in Firearms, 89 Fed. Reg. 28,968 (Apr. 19, 2024), codified at 27 C.F.R. § 478 (2026). The Final Rule is therefore VACATED.”
That is all it took. The rule was unlawful. The plaintiffs proved it. The Court vacated it.
On May 1, 2024, the States of Texas, Louisiana, Mississippi, and Utah, together with Gun Owners of America, Gun Owners Foundation, the Tennessee Firearms Association, Virginia Citizens Defense League, and Jeffrey Tormey, filed suit in federal court in Texas challenging the ATF’s so-called “engaged in the business” rule. The rule, adopted under the Biden Administration, radically expanded the meaning of the phrase “engaged in the business” as applied to firearms dealers. In practical effect, the ATF attempted to force countless law-abiding gun owners, potentially hundreds of thousands or even millions of Americans, into federal licensure even though they were not operating commercial firearms businesses and did not need federal firearms licenses under the law as Congress wrote it.
The plaintiffs moved aggressively for injunctive relief to stop enforcement of the rule. The federal district court granted that relief. The ATF appealed to the Fifth Circuit Court of Appeals, but later dismissed its appeal. The district court has now dissolved the preliminary injunction, dismissed pending motions, granted summary judgment for the plaintiffs, and vacated the rule.
This outcome is an important reminder: the ATF does not have authority to rewrite federal law by regulation. Congress writes statutes. Agencies administer them. When an agency attempts to transform lawful conduct into regulated conduct by bureaucratic decree, it must be challenged—and defeated.
But, it should not have taken two years of litigation to reach this result.
Congress could have acted. Congress could have clarified the statute. Congress could have restricted the ATF’s ability to abuse vague language and impose sweeping burdens on lawful gun owners. Congress could have stopped this regulatory overreach before citizens, states, and public-interest organizations were forced into federal court. But Congress failed to act Americans – again.
That failure is why litigation remains necessary. It is why organizations like the Tennessee Firearms Association must be prepared to fight in court, in the legislature, and in the public square. Federal agencies and even the State of Tennessee will continue testing the limits of their power unless they are stopped by courts, restrained by Congress, and opposed by organized citizens.
The ATF’s rule was not a modest clarification. It was a regulatory power grab. It was an attempt to treat ordinary Americans as federal licensees, subject them to burdens never imposed by Congress, and chill lawful firearm ownership and transfers through fear of prosecution or enforcement. This ruling exposes that overreach for what it was.
The Tennessee Firearms Association is proud to have served as a named plaintiff in this important case and thereby represent the interests of its members. It is honored to have fought with Gun Owners of America and other plaintiffs who were willing to stand on constitutional principles. But this victory is not the end of the fight. It is proof that the fight matters.
TFA will continue working to defend the rights of Tennessee gun owners and to support efforts that hold federal and state officials accountable when they exceed their lawful authority or, more commonly, when they knowingly violate the constitutional limits that we imposed on them.
If you are willing to help the Tennessee Firearms Association continue battles like this, please join TFA and consider making a supplemental member donation. Your support helps sustain the work necessary to oppose unconstitutional and unlawful restrictions on firearms rights. You may also donate to the Tennessee Firearms Foundation, a 501(c)(3) charitable organization that expends some of its donated funds on public-interest litigation.
Court victories do not happen by accident. They require plaintiffs willing to stand, lawyers willing to fight, and citizens willing to fund the battle.
This was a major victory. With your help, it will not be the last.