The Wire · CalGunHub

DOJ and ATF repeal zero tolerance FFL policy and open reviews of two rules

Published April 7, 2025 · Updated October 12, 2026

DOJ and ATF repealed the 2021 zero tolerance revocation policy for licensees and began regulatory review of the stabilizing-brace and Engaged in the Business rules.

Written by the CalGunHub desk from public reporting

Who this affects: The repeal changes how ATF enforces against federal firearms licensees, including California dealers holding federal licenses. California independently licenses and inspects dealers under state law, and those state oversight systems are unaffected by the federal policy change. Federal licensees in California remain subject to both federal requirements and state licensing rules. This is general information, not legal advice.

On April 7, 2025, DOJ and ATF announced in a press release the repeal of the 2021 Enhanced Regulatory Enforcement Policy, known as the zero tolerance policy, under which ATF had sought license revocation for single willful violations. The agencies also announced that ATF will begin regulatory review of two final rules: the stabilizing-brace rule (2021R-08F) and the Engaged in the Business rule (2022R-17F). The repeal ends revocation as a default response to willful violations and replaces it with an administrative-action framework emphasizing remediation, per the release. The change applies to federal firearms licensees and took effect immediately. The policy has been rescinded and not reinstated. As the latest development, between April 29 and May 8, 2026, the EO 14206 package formalized the shift, including a proposed rule defining the "willfully" standard for revocation actions (91 FR 25201, May 8, 2026), according to the announced rulemaking.

Informational only, not legal advice. Facts are attributed to the sources listed above.