The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Department of Justice have introduced significant policy changes that impact federal firearms licensees, gun dealers, and the firearm industry across the United States. The ATF regulatory environment has shifted under the Trump administration and Biden administration, and 2025 continues that trend with reforms focused on public safety, compliance, and protecting Second Amendment rights.
There have been significant changes to ATF policies that affect federal firearms licensees, including current policies, upcoming regulations, and recent historical updates that still impact compliance. Key topics include short-barreled rifles (SBRs), suppressors, pistol braces, ATF Form requirements, and law enforcement priorities.
FastBound provides firearm dealers and gun stores with tools to maintain compliance with ATF rules, protect against clerical errors and paperwork errors, and stay prepared for inspections.
Active ATF Changes (Effective as of July 2025)
On April 7, 2025, the ATF announced the repeal of its ‘Enhanced Regulatory Enforcement Policy.’ ATF Order 5370.1H formalized this change on May 6, 2025, establishing a new administrative action framework. This enhanced regulatory enforcement policy had previously mandated revocation for specified willful violations (e.g., transfers to prohibited persons, falsified 4473s).
Now, the ATF focuses on serious or willful violations and repeat violations rather than minor mistakes, reducing unnecessary disciplinary action against law-abiding gun dealers and firearm industry professionals. This change reflects a shift toward prioritizing violent crime prevention and firearm retrieval from prohibited persons rather than targeting paperwork mistakes.
In May 2025, the ATF launched its “New Era of Reform” to modernize compliance processes and address outdated regulations. This initiative includes revising ATF forms, simplifying final rule language, and removing duplicative requirements that created unnecessary burdens for firearm dealers and gun stores. The Department of Justice stated that these reforms protect the constitutional right to keep and bear arms, which is not a second-class right.
In June, ATF introduced Ruling 2025-1, allowing certain dual-use barrels for import, and Ruling 2025-2, expanding training ammunition import approvals. The agency also clarified background check procedures under the Brady Act, specifying which permits qualify for exemptions during a firearm purchase. These updates provide clarity for federal firearms licensees managing firearm transfers and reinforce the role of law enforcement in preventing firearm-related crime.
NFA Tax Repeal (H.R. 1 – “One Big Beautiful Bill”)
On July 4, 2025, President Trump signed H.R. 1 into law, marking one of the most significant pieces of legislation for the gun industry and Second Amendment advocates in recent years. The law eliminates the $200 NFA tax for suppressors, short-barreled rifles, short-barreled shotguns, and Any Other Weapons (AOWs).
Effective January 1, 2026, these NFA items will no longer require tax stamps; however, registration and compliance requirements remain unchanged. FFLs and gun stores must still submit ATF Form 1 or Form 4, provide fingerprints, photos, and maintain accurate serial number records for every NFA item. Machine guns and destructive devices remain subject to the existing $200 tax and all NFA requirements.
Even after the tax repeal, the federal government will continue to enforce recordkeeping and form submissions to ensure public safety and prevent unlawful firearm transfers.
House CJS Appropriations Bill – FY 2026
Currently under debate in the U.S. Congress, the House Commerce, Justice, Science, and Related Agencies Appropriations Bill proposes a 26% funding reduction for ATF operations, cutting the budget from $1.625 billion to $1.2 billion. The proposal also blocks any ATF merger with the DEA and ties part of ATF funding to meeting NFA application processing benchmarks: 120 days for paper submissions and 60 days for eForms.
If passed, this bill would impact the ATF’s ability to enforce laws related to firearms, explosives, and tobacco, as well as influence its role in law enforcement investigations, including firearm tracing during enforcement actions. For firearm dealers and federal firearms licensees, this could result in faster processing times but potentially reduced oversight.
NFA Items and Pistol Brace Compliance
The ATF’s 2023 final rule (2021R-08F) classified certain braced pistols as short-barreled rifles, requiring NFA registration and tax payment. This created compliance challenges for firearm dealers and gun stores and prompted significant debate over Second Amendment rights.
An amnesty period ended May 31, 2023, but multiple court rulings in 2024, including Mock v. Garland, vacated the rule, making pistol braces legal once again under federal law. As of July 2025, pistol braces are not considered stocks and do not make a firearm an SBR under federal regulations.
Short-barreled rifles, short-barreled shotguns, and suppressors remain regulated under the NFA. Federal firearms licensees must complete all ATF forms, maintain accurate A&D entries, and comply with background check requirements for firearm purchases involving these items.
When H.R. 1 goes into effect on January 1, 2026, the $200 tax will be removed for these items, but all other compliance steps remain in effect, including paperwork submission and maintaining a valid serial number on each firearm. Machine guns remain subject to the $200 tax and strict NFA controls.
The following items will be affected:
- Pistol Braces: Legal and not classified as SBRs
- SBRs, SBSs, and Suppressors: NFA paperwork and registration required; tax eliminated in 2026
- Machine Guns: Still require NFA registration and $200 tax
Key 2023–2024 Changes Still in Effect
Frame or Receiver Rule (2021R-05F)
This ATF final rule, effective August 24, 2022, clarified what qualifies as a frame or receiver and mandated serialization requirements. These updates prevent untraceable firearms and strengthen public safety by ensuring accurate recordkeeping in federal firearms licensees’ bound books.
Electronic A&D Bound Books and eForms
The ATF continues to support electronic A&D record systems and digital ATF Form 4473 submissions. These systems help firearm dealers prevent clerical errors, avoid disciplinary action during inspections, and maintain compliance with federal law enforcement standards.
How FastBound Helps FFLs Stay Compliant
FastBound provides the firearm industry with a robust compliance platform designed to meet ATF and Department of Justice requirements, while reducing errors and avoiding penalties:
- Electronic A&D Bound Book and ATF Form 4473: Fully compliant with ATF final rule requirements and digital recordkeeping standards.
- Automatic Updates: Responds instantly to policy changes, from NFA tax updates to revised ATF forms.
- Error Prevention: Detects paperwork errors and clerical mistakes before they lead to disciplinary action.
- Legal Protection through FFLGuard: Offers legal support from National Coordinating Counsel and Subject Matter Experts during ATF inspections, enforcement actions, or compliance disputes.
- Audit-Ready Reporting: Provides formatted reports for ATF or any law enforcement agency inspection, protecting firearm dealers from compliance risks.
