Acting ATF Director Kash Patel Announces an End to the Agency’s Abusive ‘Zero Tolerance’ FFL Inspection Program

One of the most insidious ways that the virulently anti-gun Biden administration weaponized the nation’s firearms regulatory agency was to institute a “zero tolerance” policy for the nation’s gun retailers. In practice, that meant when a gun store was visited by the ATF’s industry operations inspectors to periodically audit their systems and paperwork, they were given no leeway at all for routine errors such as typos and other inadvertent errors on 4473 paperwork and the like.

The goal, of course, was to find as many FFLs as possible in violation of ATF’s regulations and shut them down. Biden’s ATF yanked the tickets of literally hundreds of FFLs over the years. You can read a few of our posts on the topic here, here, and here.

But once again, as someone once said, elections have consequences. Today, FBI Director Kash Patel, who’s also the acting ATF Director, announced that the Trump administration has put an end to the firearm regulator’s ritual abuse of law-abiding gun dealers. As you’d expect, the NSSF is pleased . . .

The Firearm Industry Trade Association — praises the announcement today by the Department of Justice (DOJ) and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) that the agencies are doing away with the Biden-era “zero-tolerance” policy that punished lawful and highly-regulated Federal Firearm Licensees (FFLs) for minor clerical errors. The announcement also stated the agency was reconsidering the “Engaged in the Business” Final Rule and the Final Rule regarding factoring criteria for firearms with attached “stabilizing braces.” These particular Biden-era policies have been major impediments to the lawful and highly-regulated firearm industry’s ability to provide for the exercise of the Second Amendment. Both of those Final Rules have been enjoined by federal courts.

“NSSF applauds today’s announcement by the DOJ and ATF that the Biden-era ‘zero-tolerance’ policy is being eliminated. This is great news for the industry that provides for the lawful exercise of the Second Amendment. We have worked with the Trump administration to secure this critical industry victory since the first day of the president’s second term and we value the cooperation we’ve received at DOJ and ATF to arrive at today’s decision,” said Lawrence G. Keane, NSSF Senior Vice President and General Counsel. “The Biden administration purposefully suffocated the firearm industry at every opportunity and no policy was more damaging than its so-called ‘zero-tolerance’ policy. This reckless policy throttled small businesses and drove many to shut down by threatening crippling administrative costs to fight against penalties for minor errors and infractions that were previously reconciled in good faith between ATF officials and law-abiding firearm retailers.”

In addition, the Biden-era “Engaged in the Business” Final Rule which redefined by edict that individuals privately selling firearms were to be considered in the business of selling firearms, requiring nearly any individual selling more than one firearm to obtain a federal firearms license (FFL). This action was designed by the Biden ATF to move the United States closer towards universal background checks, which have repeatedly been rejected by Congress. NSSF is pleased to learn of this consideration.

“Additionally, NSSF is glad to learn that the ATF rule on stabilizing arm braces is also under review,” Keane added. “The Biden-era ATF published this errant rule after determining for years that stabilizing arm braces attached to a pistol did not alter the classification of the firearm and instead decided these lawfully-sold pistols would now be regulated as short-barreled rifles (SBRs), turning tens of millions of Americans into felons overnight. Exercising the Second Amendment is not possible without the firearm industry and this announcement by the DOJ and ATF today should truly be celebrated.”

The Biden administration “zero-tolerance” policy was enacted by executive fiat, and allowed ATF to revoke a federal firearm license for a single, minor clerical error. Prior, minor administrative errors found during inspections were annotated for corrective action with ATF inspectors instructing firearm retailers on how to stay within regulations and laws. During the Biden administration, FFL warning letters and license revocations reached a blistering pace and had devastating effects on small businesses.

Former President Joe Biden infamously deemed the lawful firearm industry “the enemy” from the presidential debate stage. During the Biden administration, ATF revoked ever increasing numbers of FFL licenses each year. In addition, reports indicate that numerous FFLs voluntarily surrendered their licenses rather than endure the costly and painstaking process of clearing their name for the minor infractions.

President Donald Trump has promised to protect the Second Amendment rights of law-abiding Americans. He signed an Executive Order directing Attorney General Pam Bondi to examine all orders, regulations and other executive department actions to assess any ongoing Second Amendment infringements and to present a proposed action plan of action to protect Americans’ rights. NSSF wholeheartedly supports these efforts and praises Acting Director Patel’s announcement today.

NSSF urges the DOJ to finalize the pending rule to permit federal firearms licensees to access the FBI’s National Instant Criminal Background Check System (NICS) to voluntarily conduct employment screening checks on current and prospective employees, as provided for the Bipartisan Safer Communities Act (BSCA).