On Tuesday, the United States Court of Appeals for the Fifth Circuit issued a significant order in a high-profile Second Amendment lawsuit, denying the Department of Justice’s (DOJ) request to delay proceedings further. The case, stemming from the Northern District of Texas, pits several states and Gun Owners of America against the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) over a controversial Biden-era rule redefining who qualifies as “engaged in the business” of dealing firearms.
The court’s one-page order bluntly stated: “IT IS ORDERED that Appellants’ opposed motion to extend the stay of proceedings in this case for 60 days, or to and including February 20, 2026, is DENIED.” This decision, celebrated by gun rights advocates, rejects the DOJ’s attempt to prolong a nearly year-long delay and could accelerate a ruling on the merits of the ATF rule.
The rule in question stems from the John Cornyn (R-TX) Bipartisan Safer Communities Act (BSCA) of 2022, which amended the Gun Control Act (GCA) to broaden the definition of a firearms dealer. Prior to the BSCA, individuals could occasionally sell firearms from their personal collections without a Federal Firearms License (FFL). The ATF’s final rule, published in April 2024, expanded this by presuming that anyone selling firearms “predominantly to earn a profit” is “engaged in the business,” even without a minimum number of sales.
Critics argue that the rule effectively requires hobbyists, collectors, and occasional sellers to obtain an FFL, undergo background checks for transfers, and maintain records that were previously reserved for commercial dealers. Proponents claim it closes loopholes allowing unregulated sales at gun shows or online.
The lawsuit, led by states including Texas, Louisiana, Mississippi, and Utah, alongside groups like Gun Owners of America, Gun Owners Foundation (GOF), Tennessee Firearms Association (TSA), and Virginia Citizens Defense League (VCDL), challenges the rule as exceeding statutory authority, violating the Administrative Procedure Act (APA), and infringing on Second Amendment rights in a post-Bruen world.
In June 2024, a district court in the Northern District of Texas granted a preliminary injunction, halting enforcement of the rule. The DOJ appealed but has since sought multiple stays, citing the need for time under the new administration’s review.
The case reached the Fifth Circuit. Plaintiffs-Appellees include the aforementioned states and organizations, while Defendants-Appellants are the ATF, DOJ, United States Attorney General (AG) Pamela Bondi, and Acting ATF Director Daniel Driscoll.
The DOJ’s motion sought a 60-day extension of the stay, extending the proceedings beyond February 20, 2026. This request would have remained delayed for nearly a year since the initial appeal. The plaintiffs, particularly GOA, vigorously opposed the DOJ’s motion.
The Fifth Circuit’s denial forces the case forward. Oral arguments and a decision on the merits of the case could come sooner, potentially striking down the rule once and for all if the appellate panel affirms the lower court’s injunction or vacates the regulation.
The Gun Owners Foundation, a plaintiff, broke the news on X (formerly Twitter), calling it “BREAKING” and a rebuke to the DOJ’s “nearly a year of delays.” They urged Attorney General Pamela Bondi—described by some supporters as “the most pro-2A AG in US history” to “stop protecting Biden ATF infringements.”
Aidan Johnston, GOA’s Director of Federal Affairs, echoed this sentiment: “This is huge. To the lawyers at DOJ… get wrecked! Stop defending this crap, quit it with the delays.”
BREAKING
The 5th Circuit just DENIED @TheJusticeDept‘s motion to continue nearly a year of delays in our lawsuit against ATF’s “Engaged in the Business” rule.
“The most pro-2A AG in US history” must stop protecting Biden ATF infringements! pic.twitter.com/wKSDmBzwnC
— Gun Owners Foundation (@GunFoundation) January 13, 2026
The decision highlights tensions within the Trump administration’s second term, which began in January 2025. Despite promises to roll back Biden-era gun controls, the DOJ, under Bondi, continued defending specific rules, drawing criticism from hardline Second Amendment advocates who accuse it of holdover policies or bureaucratic inertia.
About John Crump
Mr. Crump is an NRA instructor and a constitutional activist. John has written about firearms, interviewed people from all walks of life, and on the Constitution. John lives in Northern Virginia with his wife and sons, follow him on X at @crumpyss, or at www.crumpy.com.
