DOJ drops ATF business rule appeal — Illinois FFLs catch break

AURORA, IL — The Department of Justice has dropped its appeal in a major challenge to the ATF's "engaged in the business" rule, handing Gun Owners of America a complete victory that directly benefits Illinois firearms dealers who faced expanded licensing requirements under the Biden administration's regulatory push.

Gun Owners of America announced April 16 that the DOJ formally surrendered its appeal after losing in federal court. The rule would have dramatically expanded who needs a Federal Firearms License by redefining what constitutes being "engaged in the business" of dealing firearms.

What the ATF business rule would have done to Illinois dealers

The now-abandoned rule threatened to trap occasional sellers and small-scale dealers in a web of federal licensing requirements that previously applied only to high-volume commercial operations. For my shop in Aurora and other Illinois FFLs, this created uncertainty about customer referrals, private sales, and even helping customers connect with each other.

Under the expanded definition, someone who sold as few as two firearms with the intent to make a profit could have been deemed "engaged in the business" and required to obtain an FFL, conduct background checks, and maintain federal records. The rule was supposed to take effect in May 2024, but court challenges stopped it cold.

Why Gun Owners of America's victory matters for Illinois

GOA sued the ATF in federal court, arguing the rule exceeded the agency's statutory authority and violated the Second Amendment. When they won, the Biden DOJ appealed — but now the Trump administration has thrown in the towel entirely.

"GOA and Gun Owners Foundation are proud to announce a major win in our ongoing legal battle against the Bureau of Alcohol, Tobacco, Firearms and Explosives," the organization said in its press release.

This matters particularly in Illinois, where gun owners already navigate some of the nation's most restrictive state laws. The PICA rifle and magazine ban, FOID card requirements, and lengthy waiting periods create enough regulatory burden without federal agencies piling on additional restrictions that blur the line between commercial dealers and private citizens.

How this connects to our ongoing Second Amendment fights

The DOJ's decision to abandon this appeal shows the new administration taking a fundamentally different approach to firearms regulation than its predecessor. This is the same DOJ that filed an amicus brief supporting our Bevis v. Naperville case and sent attorney Harmeet Dhillon to argue against Illinois' PICA ban at the Seventh Circuit.

When I wrote directly to the DOJ about how Illinois' rifle ban was destroying businesses like Law Weapons, I didn't expect them to respond by actively joining our fight in court. But that's exactly what happened — and now we're seeing the same administration refuse to defend ATF overreach that the previous DOJ was eager to pursue.

What Illinois gun owners should know going forward

With this rule definitively dead, the traditional understanding of who needs an FFL remains in place. Private citizens can still sell firearms to other private citizens without federal licensing, as long as they're not in the business of dealing firearms as a regular course of trade or livelihood.

For customers at Law Weapons, this removes one layer of uncertainty about private transfers and referrals. You don't have to worry about accidentally triggering federal licensing requirements by selling a couple of guns from your personal collection.

The bigger picture is that we're seeing federal agencies pulled back from the aggressive regulatory expansion that marked the previous four years. Whether it's abandoning appeals on licensing rules or supporting constitutional challenges to state-level bans, the change in direction is unmistakable.

As of April 2026, this particular fight is over — and gun owners won. But we're still waiting for the Seventh Circuit to rule on our challenge to Illinois' PICA ban, and that case will determine whether Illinois gun owners can actually exercise their Second Amendment rights or remain trapped under the most restrictive gun laws in the nation.

We keep watching. We keep fighting. And we keep serving the people who refuse to be treated like second-class citizens for exercising a constitutional right.

— Robert Bevis, Law Weapons & Supply