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May 29, 2024
The Biden Administration's New Restrictions on Firearms Sales

Federal firearms policies and changes to firearms
regulations are subjects of ongoing congressional interest.
The Biden Administration made several recent changes to
firearms regulations, including those that affect licensing
and associated requirements to perform background checks
and those that govern private gun sales both within and
across U.S. borders. The Biden Administration notes that
these changes are intended to reduce the flow of illegally
acquired firearms and hold accountable those who supply
the firearms used in crime. Policymakers may examine
how these regulatory changes affect both lawful domestic
firearms dealers and criminal networks engaged in firearms
trafficking.
Federa Firearms Licenses and Background Checks
The Department of Justice's Bureau of Alcohol, Tobacco,
Firearms, and Explosives (ATF) is primarily tasked with
regulating domestic sales of firearms. Following the
enactment of the Bipartisan Safer Communities Act
(BSCA; P.L. 117-159), the Biden Administration made
regulatory changes to reduce unregulated private gun sales.
In order to implement the provisions of the BSCA, ATF
issued a rule (finalized May 11, 2024) redefining who is
engaged in the business of dealing firearms and thus
required to obtain a Federal Firearms License (FFL). Prior
to this final rule and the BSCA, individuals were required
to have an FFL if their firearms sales had the principal
objective of livelihood.
Individuals with FFLs are licensed gun dealers and are
required to conduct background checks before completing a
firearms transfer. Federal law requires that sellers with
FFLs conduct background checks on any person seeking to
purchase a firearm from them (18 U.S.C. §922(t)). Because
different states have different background check
requirements, prior to the ATF's May 2024 final rule
individuals who were unable to purchase a firearm from a
seller with an FFL in one state, for various reasons
including because they could not pass that state's
background check requirements, might have been able to
buy a firearm from a seller in a different state with less
strict background check requirements. Private firearm
transfers that do not require background checks are
colloquially called private sale exemptions or gun show
loophole transfers.
ATF's rule change alters who is required to have an FFL
and thus who is required to conduct background checks on
prospective firearm purchasers. Prior to the May 2024 final
rule, unlicensed sellers were able to transfer firearms to
another person without conducting a background check as
long as they did not have reasonable cause to believe that
the person was prohibited from receiving or possessing
firearms. Following this rule change, a person who sells

firearms is required to be a licensed gun dealer and obtain
an FFL if the objective of their gun sales is to
predominantly earn a profit. Thus, generating profit more
broadly (rather than earning a livelihood more narrowly) is
now considered being engaged in the business of dealing
firearms and thus requires licensure.
Additionally, ATF's rule makes private firearm transfers
subject to Gun Control Act (GCA, 18 U.S.C. §§921 et seq.)
recordkeeping and background check requirements if the
transfers are made by profit-oriented, repetitive firearms
buyers and sellers, regardless of where a potential purchaser
resides. These sellers now need FFLs, thus requiring them
to conduct National Instant Criminal Background Check
System (NICS) background checks. While states may still
set additional background check requirements, the ATF rule
change may reduce the number of individuals crossing state
lines to purchase firearms in states with less restrictive
background check requirements.
The Department of Justice estimates that 23,006 unlicensed
persons currently engaged in the business of firearms
dealing will need to apply for licenses.
Commerce Department Ru e on Revision of
Firearms License Requirements
The Commerce Department's Bureau of Industry and
Security (BIS) is tasked with regulating private sales of
firearms to other countries. On April 30, 2024, BIS released
an interim final rule (IFR) that restricts private transfers of
firearms out of the United States.
To sell a weapon across international borders prior to the
April 2024 IFR, U.S. citizens needed to receive an export
license and undergo end-use monitoring designed to ensure
that weapons sent are not those in short supply nor being
received by individuals sanctioned by the United States or
who wish to do harm or engage in activity that could harm
the United States.
In 2020, new regulations shifted export control of certain
small arms and light weapons from the State Department's
(DOS's) United States Munitions List to BIS's Commerce
Control List. BIS initially did not have access to DOS's
internal watch list for end-use monitoring, resulting in BIS
lacking prior end-use monitoring information. BIS was also
lacking in other areas of end-use monitoring compared to
DOS, including having no requirements for written
certification of the purchaser agreeing not to resell,
allowing multiple end-users on a single license, granting
more license exemptions, and not having public notification
requirements.