Southwest
Biden admin drops its 'zero tolerance' policy targeting gun dealer licenses over paperwork errors
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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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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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.
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Jurors deliberating the fate of the man accused of starting the Palisades Fire, one of the most destructive wildfires in California’s history, failed to reach a verdict Thursday afternoon, telling the judge they were deadlocked.
A spokesperson from the United States Attorney’s Office told KTLA that jurors will continue to deliberate until they reach a verdict or give up.
Jonathan Rinderknecht, 30, a former Uber driver and one-time Pacific Palisades resident, is accused of starting the Lachman Fire on New Year’s Eve. The fire continued to smolder underground for about a week, even after Los Angeles firefighters believed it had been extinguished.
Flames reignited on Jan. 7, erupting into the deadly Palisades Fire that killed 12 people and destroyed thousands of homes in the upscale community, authorities said.
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A courtroom sketch of Jonathan Rinderknecht, 29, during his initial court appearance on Oct. 23, 2025. (Bill Robles) -
The U.S. Dept. of Justice booking photo of Jonathan Rinderknecht over the Palisades Fire devastation in Malibu, California in January 2025 (AP).
Prosecutors argued that Rinderknecht deliberately set the fire, claiming he had grown increasingly resentful of wealthy residents and viewed Pacific Palisades as a symbol of that frustration.
“Their case, though circumstantial, is strong,” KTLA legal analyst Alison Triessl said. “The defense is relying on, can they (prosecutors) show beyond a reasonable doubt that Mr. Rinderknecht actually started this fire and it wasn’t the result of fireworks or some intervening cause.”
The defense argued there is no direct physical evidence tying Rinderknecht to the fire and said the prosecution’s case relies entirely on circumstantial evidence. Rinderknecht did not testify during the trial.
Defense attorney Steve Haney spoke outside the courthouse Wednesday about why he believes it will be difficult for prosecutors to prove how the fire started.
“The lack of scene preservation. The fact that they got there after a lot of the evidence was missing. Not a lot of direct evidence. This is a circumstantial case, which is always difficult as a prosecutor to prove,” Haney said.
Rinderknecht, who was arrested and indicted last October, faces up to 45 years in prison if found guilty of three arson counts, including destruction of property by means of fire, arson affecting property used in interstate commerce and timber set afire.
Tony Kurzweil contributed to this report
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