Fifth Circuit Strikes Down ATF Rule on Ghost Guns, Limits Agency Authority

The US Court of Appeals for the Fifth Circuit recently ruled that the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) lacked authority to enforce a final rule aimed at regulating “ghost guns.” These “ghost guns” are essentially weapons parts kits that one can assemble into a firearm without having to register it. This case marks another significant addition to the long list of appeals from the US District Court for the Northern District of Texas.

In the majority opinion for the three-judge panel, Circuit Judge Kurt D. Engelhardt concluded that the final rule amounted to unlawful agency action. Engelhardt criticized it for flouting clear statutory text and exceeding the legislatively-imposed limits on agency authority in the name of public policy. He also ruled that the ATF’s action oversteps the boundaries of the Gun Control Act (GCA) and is therefore considered “limitless” by the court.

Back in April 2022, the ATF had issued a final rule that shifted the definitions of “frame” and “receiver” to include split or multi-part receivers and expanded the existing gun regulations to all firearms. In particular, the final rule stipulated that:

“The terms ‘frame’ and ‘receiver’ shall include a partially complete, disassembled, or nonfunctional frame or receiver, including a frame or receiver parts kit, that is designed to or may readily be completed, assembled, restored, or otherwise converted to function as a frame or receiver.”

This expansive definition did not go unchallenged. After the ATF issued this final rule, several gun owners and manufacturers filed lawsuits arguing that the rule was overly broad and surpassed the ATF’s jurisdiction under both the National Firearms Act and the GCA. The district court sided with the plaintiffs and issued a final order in their favor. This legal challenge has since made its way up to the US Supreme Court, which blocked the original district court’s order in October 2023.

Moreover, this is not the only controversial gun law currently navigating through the US federal court system. On Tuesday, November 2023, the Supreme Court heard oral arguments in a case that challenges a federal law prohibiting individuals subject to a domestic violence court order from owning a gun.