The Department of Justice plans to eliminate two-thirds of federal gun licensing inspectors amid the Trump administration’s push to streamline the government by consolidating agencies and removing redundancies.

The DOJ’s recently released 2026 budget proposal details plans to merge the Bureau of Alcohol, Tobacco, Firearms, and Explosives with the Drug Enforcement Administration, downsizing the ATF in a move projected to cut overall costs by $468 million.

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The merger, first floated in March, includes significant reductions in the ATF’s workforce, eliminating 541 industry operations investigators. The IOI inspectors are responsible for scrutinizing federally licensed gun dealers and identifying businesses they believe are selling firearms to criminal suspects. 

The move “reduces ATF’s capacity to regulate the firearms and explosives industries” by 40%, saving the agency roughly $82 million. According to the proposal, budget savings related to overall personnel and operations cuts, including slashing another 470 positions through attrition of both agents and support personnel, would account for $354 million. 

“After absorbing select functions of ATF, DEA will remain as a single component that will address violent crime, drug enforcement, and crimes relating to firearms … [leading to] reductions of duplicative functions and infrastructure,” the DOJ document reads. “ATF will perform fewer regulatory inspections of Federal firearms and explosives. ATF will continue activities mandated by statute, such as the Safe Explosives Act.”

FBI Director Kash Patel initially served as the ATF’s acting director during the first months of the Trump administration. In April, he was removed and replaced by Army Secretary Daniel Driscoll.

The stripping down of ATF follows Republican-led efforts, including by Reps. Eric Burlison (R-MO) and Lauren Boebert (R-CO), to overhaul the agency due to concerns it undermines Second Amendment protections. The pair introduced legislation in January to abolish the ATF altogether. 

ATF UNDER FIRE TO REFORM OR SHUT DOWN

ATF is “just duplicative,” Burlison previously told the Washington Examiner. “They overlap a lot of our other agencies, the FBI, that’s really under their scope. You have the U.S. Marshals Service. There’s a lot of agencies that provide the same level of service.”

“There’s a lot of things that are being done by the ATF that are not about keeping people safe. It’s just about making everyone who wants to own a firearm make our lives miserable,” he added.