WASHINGTON, D.C. — President Trump ordered the Justice Department not to appeal a court ruling that loosened restrictions on firearms regulated under the National Firearms Act. The decision allows some Americans to possess or sell short-barreled rifles, short-barreled shotguns, and silencers with less government oversight.

In August, U.S. District Judge James Wesley Hendrix ruled that most restrictions on firearms regulated under the National Firearms Act, except for two categories of specialized firearms, are unconstitutional. The Justice Department did not seek a stay of the judge's order, allowing the injunction to go into effect on Aug. 13. President Trump informed Republican members of Congress in recent weeks that he would ensure the Justice Department did not contest the decision.

Judge James Wesley Hendrix is a Trump appointee serving in the Northern District of Texas. His opinion was based on a provision in the One Big Beautiful Bill Act that eliminated a $200 tax on transfers or manufacturing of firearms regulated under the National Firearms Act. The One Big Beautiful Bill Act reduced the tax remittance rate for certain National Firearms Act firearms from $200 to $0.

"Because today's NFA does not generate any revenue from untaxed firearms, its regulatory provisions cannot be upheld under the taxing power," Judge Hendrix wrote. "And there is no sign in the NFA's text, structure, or statutory history that Congress invoked any other power in crafting the NFA provisions at issue. Thus, the regulatory provisions must be enjoined as unconstitutional because they exceed Congress's enumerated powers." Judge Hendrix imposed a permanent injunction on the Bureau of Alcohol, Tobacco, Firearms and Explosives preventing the agency from enforcing the challenged provisions of the law.

Career and politically appointed lawyers at the Justice Department recommended appealing the ruling, disagreeing with the court's opinion. Justice Department attorneys argued the government retains legal authority to regulate the firearms under the Commerce Clause of the U.S. Constitution. They also argued that the One Big Beautiful Bill Act left intact a separate tax imposed on businesses that manufacture, distribute, or deal in the weapons at issue.

Justice Department lawyers warned that not appealing the ruling is beginning to adversely impact federal firearms prosecutions. A Justice Department official stated the department intends to inform Congress it will not appeal the ruling. A Justice Department spokesperson said the Bureau of Alcohol, Tobacco, Firearms and Explosives "will issue guidance soon to implement the court's order."

A White House spokesperson said: "Anyone who would have been prohibited from buying a firearm under the old structure is still prohibited from buying a firearm under the structure that now exists after the federal district court's decision. All federal criminal statutes imposing additional charges or penalties for the unlawful possession of a firearm remain in place and will continue to be enforced by federal law enforcement." Federal law prohibits convicted felons from owning guns, a prohibition that remains applicable to buyers of firearms previously regulated under the National Firearms Act.

The ruling does not apply to machine guns or explosive devices, which remain primarily regulated under the National Firearms Act. The deadline to appeal the court's ruling is Oct. 5. Under the National Firearms Act of 1934, individuals wishing to sell, possess, or make covered firearms previously had to submit a written application to the Bureau of Alcohol, Tobacco, Firearms and Explosives, be fingerprinted, and register the weapons with serial numbers.

The Justice Department dismissed an indictment against Cameron Silmon in the Middle District of Alabama on a charge of knowingly receiving a silencer without a serial number. Cameron Silmon's defense lawyer claimed his client had joined some of the gun rights groups after the Texas judge issued the injunction. Cameron Silmon now faces charges including illegal possession of a machine gun, a category of firearm not covered by the court's injunction.

Why It Matters

The non-appeal decision alters the regulatory landscape for firearms that were previously subject to strict federal oversight. Between 2017 and 2021, firearms covered by the National Firearms Act accounted for about 5% of closed gun-trafficking investigations, according to an ATF report. The removal of the $200 tax and registration requirements for certain items changes the administrative burden on owners and sellers of these weapons.

The ruling shows a shift in how the executive branch interprets congressional authority over firearm regulation. While the Justice Department maintained that regulatory power persists under the Commerce Clause, the administration chose not to pursue that argument in appellate courts. This decision leaves the permanent injunction in place unless Congress acts to restore the taxed framework or the Supreme Court intervenes before the Oct. 5 deadline passes.

What's New

In 2017, there were 119,850 applicable Forms 1 and 4 applications for National Firearms Act items, with an estimated $23,798,985 in taxes assessed. Justice Department is United States federal executive department. National Firearms Act is 1934 US law regulating firearms including machine guns.

How Sources Differ

National firearms [detail_gap] Changes to National Firearms Act Tax Remittance Provisions: The One Big Beautiful Bill Act reduced the tax remittance rate for certain National Firearms Act firearms from $200 to $0. One Big Beautiful Bill Act: Judge Hendrix's opinion was based on a provision in the One Big Beautiful Bill Act that eliminated a $200 tax on transfers or manufacturing of firearms regulated under the National Firearms Act.