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Federal Court Strikes Down Biden Administration’s “Engaged in the Business” Rule in NRA Case

Thursday, October 2, 2025

Federal Court Strikes Down Biden Administration’s “Engaged in the Business” Rule in NRA Case

Yesterday, in Butler v. Bondi, the U.S. District Court for the Northern District of Alabama held that the Bureau of Alcohol, Tobacco, Firearms and Explosives exceeded its statutory authority by issuing its 2024 Final Rule expanding the definition of being “engaged in the business” of “dealing in firearms.”

Congress forbids anyone, “except a licensed importer, licensed manufacturer, or licensed dealer, to engage in the business of importing, manufacturing, or dealing in firearms.” Dealing in firearms without a license is punishable by up to five years’ imprisonment, a $250,000 fine, and a loss of the right to possess a firearm.

Under the Firearms Owners’ Protection Act (FOPA) of 1986 (which amended the Gun Control Act of 1968), someone is “engaged in the business” of dealing in firearms if that person “deal[s] in firearms as a regular course of trade or business with the principal objective of livelihood and profit through the repetitive purchase and resale of firearms.” The 2022 Bipartisan Safer Communities Act (BSCA) altered that definition by replacing “livelihood and profit” with “to predominantly earn a profit.” The BSCA did not alter FOPA’s exclusion for “a person who makes occasional sales, exchanges, or purchases of firearms for the enhancement of a personal collection or for a hobby, or who sells all or part of his personal collection of firearms.”

On April 19, 2024, the ATF promulgated the Final Rule “to clarify[] the criteria for determining when a person is ‘engaged in the business.’” The Final Rule provides that “there is no minimum threshold number of firearms purchased or sold that triggers the licensing requirement” and that “there is no minimum number of transactions that determines whether a person is ‘engaged in the business’ of dealing in firearms.” It explains that “even a single firearm transaction or offer to engage in a transaction . . . may require a license.” The Final Rule also excludes firearms acquired for “personal protection” from the firearms that may be sold from a personal collection without a license. The ATF’s Final Rule thus rewrites the law, contradicts Congress’ statutory language, and adds confusion rather than clarification.

On July 19, 2024, the National Rifle Association and two NRA members sued the Attorney General, the ATF, the ATF Director, and the Department of Justice, asking the district court to invalidate the Final Rule on several grounds.

Yesterday, the district court invalidated the Final Rule, holding that the ATF exceeded its statutory authority by issuing it. The court issued a permanent injunction against the ATF and the DOJ from enforcing several provisions of the Final Rule against the plaintiffs in the case, including all members of the NRA, and entered a declaratory judgment to that effect.

Please stay tuned to www.nraila.org for future updates on NRA-ILA’s ongoing efforts to defend your constitutional rights, and please visit www.nraila.org/litigation to keep up to date on NRA-ILA’s ongoing litigation efforts.

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Virginia: Legislature Adjourns from 2026 Session; Anti-Gun Bills on Governor's Desk

Sunday, March 15, 2026

Virginia: Legislature Adjourns from 2026 Session; Anti-Gun Bills on Governor's Desk

On Saturday, March 14th, the Virginia General Assembly adjourned sine die from the 2026 legislative session, and the future of the Commonwealth hangs in the balance. 

Connecticut: Pistol Ban Advances in the Legislature

Sunday, March 29, 2026

Connecticut: Pistol Ban Advances in the Legislature

Last week, the Connecticut Judiciary Committee voted to advance HB5043 - A bill championed by Governor Ned Lamount aimed at banning so-called "convertible pistols".

Washington: Governor Signs 3D-Printing Ban

Thursday, March 26, 2026

Washington: Governor Signs 3D-Printing Ban

The Washington legislature adjourned sine die from the 2026 legislative session on March 12. 

DOJ Legal Filing Renews Concerns About ATF’s Posture on Braced Pistols

Friday, March 20, 2026

DOJ Legal Filing Renews Concerns About ATF’s Posture on Braced Pistols

The saga of ATF’s enforcement of the National Firearm Act’s “short barreled rifle” provisions against braced pistols has been a roller coaster ride of shifting interpretations. NRA-ILA has been keeping up with, reporting on, and ...

NRA Defeats California Gun Control Law; State Must Pay Nearly $500,000 in Attorney Fees Incurred by NRA

Monday, March 23, 2026

NRA Defeats California Gun Control Law; State Must Pay Nearly $500,000 in Attorney Fees Incurred by NRA

Today, the U.S. District Court for the Eastern District of California granted a stipulation for final judgment and permanent injunction in Safari Club International v. Bonta, under which the state conceded that its firearm advertising restriction is unconstitutional ...

Utah: Governor Cox Signs Pro-Gun Legislation Into Law

Thursday, March 26, 2026

Utah: Governor Cox Signs Pro-Gun Legislation Into Law

This morning, alongside firearm industry and advocacy partners, Governor Cox signed House Bill 214 into law during a ceremony in Salt Lake City, marking a significant legislative victory for protecting lawful commerce in the firearms ...

NRA Seeks to Invalidate California’s Handgun “Roster” in Legal Challenge

News  

Monday, March 30, 2026

NRA Seeks to Invalidate California’s Handgun “Roster” in Legal Challenge

The National Rifle Association has taken legal action challenging California’s Handgun Roster, a regulatory regime that effectively bans most commonly owned handguns.

Michigan: Constitutional Carry Legislation Introduced

Thursday, March 5, 2026

Michigan: Constitutional Carry Legislation Introduced

A package of pro-Second Amendment legislation has been introduced in the Michigan House. House Bills 5653–5657 would make Michigan the 30th state in the nation to recognize Constitutional Carry, allowing individuals who are legally permitted ...

Virginia Lawmakers Want to Punish Crime Victims and Exempt Themselves from Gun Control

News  

Monday, March 23, 2026

Virginia Lawmakers Want to Punish Crime Victims and Exempt Themselves from Gun Control

Anti-gun lawmakers in Virginia’s General Assembly recently earned well-deserved scorn by trying to create a special carveout for themselves in one of their numerous gun control bills. 

Ohio: Senate Passes Suppressor Legislation

Wednesday, March 25, 2026

Ohio: Senate Passes Suppressor Legislation

Today, The Senate passed SB 214 by a vote of 31-1, legislation to remove firearm suppressors from the definition of “dangerous ordnance” in the Ohio Revised Code. This legislation now goes to the house where ...

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NRA ILA

Established in 1975, the Institute for Legislative Action (ILA) is the "lobbying" arm of the National Rifle Association of America. ILA is responsible for preserving the right of all law-abiding individuals in the legislative, political, and legal arenas, to purchase, possess and use firearms for legitimate purposes as guaranteed by the Second Amendment to the U.S. Constitution.