DOJ Drops Appeal on ATF ‘Engaged in the Business’ Rule in Major 2A Victory

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In a monumental win for Second Amendment rights, the Department of Justice under President Trump has just dropped its appeal against a federal court’s preliminary injunction blocking the ATF’s overreaching “Engaged in the Business” rule. This rule was nothing short of a sneaky attempt to obliterate private firearm transfers and slam the door on the so-called “gun show loophole.” Gun owners across America can breathe a sigh of relief—your right to buy, sell, or trade firearms privately without jumping through federal hoops remains intact.

Texas Attorney General Ken Paxton celebrating the DOJ's decision to drop the appeal on the ATF rule

The ATF’s Power Grab: What Was at Stake

Back in 2024, the ATF finalized its rule redefining what it means to be “engaged in the business” of dealing firearms. Under the guise of public safety, this regulation expanded the definition to rope in everyday gun owners who occasionally sell a personal firearm. Forget about selling your old hunting rifle to a buddy or trading at a gun show—no more. The ATF wanted mandatory background checks, FFL paperwork, and a mountain of red tape for any transfer that smelled like profit to them.

Critics, including a coalition of 28 state attorneys general led by Texas AG Ken Paxton, called it what it was: an unconstitutional assault on the Second Amendment. Private sales between law-abiding citizens aren’t “dealer” activity—they’re a fundamental exercise of our rights, protected by the Supreme Court’s Bruen decision. The rule threatened to criminalize grandfathers passing down heirlooms or friends helping each other upgrade gear.

Texas Leads the Charge: Multistate Lawsuit Delivers Knockout Blow

Texas AG Ken Paxton didn’t mince words when filing suit in May 2024: “The Biden ATF is hell-bent on disarming law-abiding Americans.” Joined by states like Louisiana, Mississippi, and Utah, the lawsuit argued the rule violated the Administrative Procedure Act and trampled 2A protections. In a stunning early victory, a federal judge in Texas issued a preliminary injunction in June 2025, halting the rule nationwide.

The Biden-era DOJ appealed, but with Trump back in the White House, the winds shifted. On April 24, 2026, the new DOJ filed to dismiss the appeal entirely, letting the injunction stand. Paxton hailed it as “a huge win for the Second Amendment,” emphasizing that it stops the ATF from “turning hobbyists into felons.”

Gavel slamming down on ATF's Engaged in the Business rule with Second Amendment overlay

Why This Victory Matters for Every Gun Owner

  • Private Transfers Protected: No more fear of federal agents knocking on your door for selling a gun to settle a debt or upgrade your collection.
  • Gun Shows Stay Free: The “loophole” gun grabbers love to hate remains wide open for lawful, private exchanges.
  • Precedent for Future Fights: This reinforces Bruen‘s historical tradition test—ATF can’t invent new restrictions out of thin air.
  • Trump DOJ Delivers: A clear signal that the era of anti-gun bureaucracy is over.

This isn’t just a legal technicality; it’s a firewall against incremental erosion of our rights. The ATF’s rule would have funneled millions more Americans into a national registry-by-backdoor, paving the way for confiscation schemes. Thanks to Paxton and the multistate warriors, that’s off the table—for now.

Stay Vigilant, Patriots

Celebrate this W, but don’t get complacent. Anti-2A forces in Congress and the courts are already plotting their next move. Support pro-gun leaders like Ken Paxton, join the NRA or GOA, and keep your reps’ feet to the fire. The Second Amendment isn’t self-sustaining—it demands defenders.

What do you think of this massive victory? Sound off in the comments below, and share this post to spread the word. Freedom rings louder when we shout together!

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