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Biden admin drops its 'zero tolerance' policy targeting gun dealer licenses over paperwork errors

The policy required inspectors to revoke federal firearm licenses for gun stores for honest paperwork errors, critics said

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The Biden administration has reversed a much-criticized policy that required inspectors to revoke the federal firearms sales licenses for gun shops over certain paperwork errors or anomalies as part of a "zero tolerance" approach. 

The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) voluntarily reversed the rule following a lawsuit by Austin, Texas, gun store owner Michael Cargill, an outspoken proponent of gun rights who argued the policy impeded access to firearms and was a barrier to the right to own firearms. 

"I've literally, single-handedly castrated the ATF," Cargill told Fox News Digital. 

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Rifles on display

FAR-15 style rifles are displayed for sale at a gun store. (Reuters/Bing Guan)

Cargill brought the case with the support of the Texas Public Policy Foundation (TPPF) and America First Legal. 

Under the rule, which was issued in 2021 by the Biden administration, a Federal Firearms License (FFL) holder could have their license revoked the first time they "willfully" violate several provisions, including falsifying records, such as a firearms transaction form. 

The rule was aimed at curbing gun crimes. However, critics say it's been used to punish gun dealers for minor and honest paperwork mistakes. The TPPF cited random mistakes while filling out forms, such as writing "USA" in the field for "county" on a background check form.

Fox News Digital has reached out to the ATF. 

Matt Miller, a senior TPPF attorney and lead attorney on the case, said the Biden administration's zero-tolerance approach has been "devastating" to businesses.

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Texas gun shop

Semi-automatic shotguns are displayed for sale on shelves at the McBride Guns Inc. store in Austin, Texas, on Aug. 25, 2023. (Brandon Bell/Getty Images)

"Many gun stores have been forced to close due to the illegal terms of the old enforcement order," he said in a statement. "The new order effectively restores the old enforcement guidance, which means gun stores don’t have to live in fear of honest mistakes."

Cargill previously won a case argued before the U.S. Supreme Court that overturned a federal ban on bump stocks. 

"There are 100 different ways for customers to make mistakes on the paperwork when you walk into a gun store," he said. "In this terminology, if we were to allow them to go in and inspect hospitals, and they say ‘They made a mistake in the hospital.' Whether it’s the doctor, the radiology, they made a mistake. We're going to shut the entire hospital down. That's insane."

"No one does that. No other industry is put under that type of pressure," Cargill added. 

Louis Casiano is a reporter for Fox News Digital. Story tips can be sent to This email address is being protected from spambots. You need JavaScript enabled to view it..

Authored by Louis Casiano via FoxNews January 17th 2025