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US Justice Dept takes next steps to merge ATF and DEA, sources say

May 23, 2025

WASHINGTON, D.C.: The U.S. Department of Justice wants to merge two of its agencies — the Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms and Explosives — but it will need Congressional Approval to implement the plan, four sources told Reuters.

At a meeting last week, officials from the DEA and ATF were informed that the merger could occur as soon as October, according to one source. The source spoke anonymously because the talks are not public.

As part of the plan, the White House is expected to suggest combining the budgets of the two agencies in its full 2026 budget proposal. However, Congress must approve the change, especially since the current law stipulates that funds for the ATF cannot be transferred to other agencies.

When asked about the plan, a Justice Department spokesperson referred questions to the White House Office of Management and Budget, which did not respond immediately.

The idea to merge the ATF and DEA first emerged in March when Deputy Attorney General Todd Blanche shared it in a memo outlining broader changes to the Justice Department.

The memo surprised many people working in the DEA and ATF. Some of the other proposed changes, such as splitting the Tax Division and the Consumer Protection Branch, have already been approved and are moving forward, according to an internal email seen by Reuters.

Combining the DEA and ATF would be one of the most significant changes to the Justice Department since the 9/11 attacks. However, it could be challenging because the two agencies perform distinctly different roles: the DEA oversees drug laws, pharmacies, and manufacturers, while the ATF regulates the firearms industry.

Earlier this month, the White House released a brief version of its 2026 budget plan that included significant funding cuts for the FBI, DEA, and ATF.

Some DEA and ATF staff worry that combining the budgets of the two agencies still won’t provide enough money to cover all their costs, one source said.