On Tuesday, america Courtroom of Appeals for the Fifth Circuit issued a major order in a high-profile Second Modification lawsuit, denying the Division of Justice’s (DOJ) request to delay proceedings additional. The case, stemming from the Northern District of Texas, pits a number of states and Gun Homeowners of America towards the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) over a controversial Biden-era rule redefining who qualifies as “engaged within the enterprise” of dealing firearms.
The court docket’s one-page order bluntly acknowledged: “IT IS ORDERED that Appellants’ opposed movement to increase the keep of proceedings on this case for 60 days, or to and together with February 20, 2026, is DENIED.” This determination, celebrated by gun rights advocates, rejects the DOJ’s try to delay a virtually year-long delay and will speed up a ruling on the deserves of the ATF rule.
The rule in query stems from the John Cornyn (R-TX) Bipartisan Safer Communities Act (BSCA) of 2022, which amended the Gun Management Act (GCA) to broaden the definition of a firearms seller. Previous to the BSCA, people might sometimes promote firearms from their private collections and not using a Federal Firearms License (FFL). The ATF’s closing rule, revealed in April 2024, expanded this by presuming that anybody promoting firearms “predominantly to earn a revenue” is “engaged within the enterprise,” even and not using a minimal variety of gross sales.
Critics argue that the rule successfully requires hobbyists, collectors, and occasional sellers to acquire an FFL, endure background checks for transfers, and keep information that have been beforehand reserved for industrial sellers. Proponents declare it closes loopholes permitting unregulated gross sales at gun reveals or on-line.
The lawsuit, led by states together with Texas, Louisiana, Mississippi, and Utah, alongside teams like Gun Homeowners of America, Gun Homeowners Basis (GOF), Tennessee Firearms Affiliation (TSA), and Virginia Residents Protection League (VCDL), challenges the rule as exceeding statutory authority, violating the Administrative Process Act (APA), and infringing on Second Modification rights in a post-Bruen world.
In June 2024, a district court docket within the Northern District of Texas granted a preliminary injunction, halting enforcement of the rule. The DOJ appealed however has since sought a number of stays, citing the necessity for time below the brand new administration’s evaluation.
The case reached the Fifth Circuit. Plaintiffs-Appellees embody the aforementioned states and organizations, whereas Defendants-Appellants are the ATF, DOJ, United States Legal professional Basic (AG) Pamela Bondi, and Performing ATF Director Daniel Driscoll.
The DOJ’s movement sought a 60-day extension of the keep, extending the proceedings past February 20, 2026. This request would have remained delayed for practically a 12 months because the preliminary enchantment. The plaintiffs, significantly GOA, vigorously opposed the DOJ’s movement.
The Fifth Circuit’s denial forces the case ahead. Oral arguments and a choice on the deserves of the case might come sooner, probably placing down the rule as soon as and for all if the appellate panel affirms the decrease court docket’s injunction or vacates the regulation.
The Gun Homeowners Basis, a plaintiff, broke the information on X (previously Twitter), calling it “BREAKING” and a rebuke to the DOJ’s “practically a 12 months of delays.” They urged Legal professional Basic Pamela Bondi—described by some supporters as “essentially the most pro-2A AG in US historical past” to “cease defending Biden ATF infringements.”
Aidan Johnston, GOA’s Director of Federal Affairs, echoed this sentiment: “That is enormous. To the legal professionals at DOJ… get wrecked! Cease defending this crap, stop it with the delays.”
🚨BREAKING🚨
The fifth Circuit simply DENIED @TheJusticeDept‘s movement to proceed practically a 12 months of delays in our lawsuit towards ATF’s “Engaged within the Enterprise” rule.
“Essentially the most pro-2A AG in US historical past” should cease defending Biden ATF infringements! pic.twitter.com/wKSDmBzwnC
— Gun Homeowners Basis (@GunFoundation) January 13, 2026
The choice highlights tensions inside the Trump administration’s second time period, which started in January 2025. Regardless of guarantees to roll again Biden-era gun controls, the DOJ, below Bondi, continued defending particular guidelines, drawing criticism from hardline Second Modification advocates who accuse it of holdover insurance policies or bureaucratic inertia.
Choose Knocks Down ATF’s Engaged within the Enterprise Rule
About John Crump
Mr. Crump is an NRA teacher and a constitutional activist. John has written about firearms, interviewed folks from all walks of life, and on the Structure. John lives in Northern Virginia along with his spouse and sons, comply with him on X at @crumpyss, or at www.crumpy.com.
