Justice Department memo clears TikTok for federal government phones, reversing years of congressional restrictions

 July 21, 2026

The Justice Department has issued a memo permitting federal employees to download TikTok on their government devices, effectively nullifying a 2022 congressional ban and raising fresh questions about whether Beijing still holds sway over the app's algorithm.

The Office of Legal Counsel, the DOJ division that interprets the law for the executive branch, concluded that TikTok's restructured American joint venture does not carry the same national-security risks as the original Chinese-owned version of the app. The memo, addressed to counsel for President Donald Trump, clears the way for executive-branch workers to install TikTok on official phones and tablets at each agency's discretion.

The decision caps a rapid sequence of moves by the Trump administration on TikTok, from the president's day-one order halting enforcement of a 2024 congressional ban, to the app's announcement of a new ownership structure, to a legal opinion that now treats the platform as an essentially American product. For lawmakers who spent years building bipartisan support for restricting TikTok on security grounds, the DOJ memo amounts to an end run around legislation they fought hard to pass.

OLC says restructured TikTok no longer fits the congressional ban

Congress passed a law in 2022 barring TikTok, and "any successor application or service developed or provided by ByteDance Limited or an entity owned by ByteDance Limited", from government devices. Lawmakers cited national-security and data-privacy concerns tied to ByteDance's Chinese ownership. Two years later, Congress went further, passing a 2024 law that sought to ban TikTok from operating in the United States entirely unless ByteDance completed a full divestiture to an American owner.

TikTok challenged the 2024 law at the Supreme Court. The court sided with Congress.

One day after taking the oath of office in January 2025, Trump directed the Justice Department not to enforce the 2024 ban. TikTok then unveiled a new U.S. joint venture composed of 80 percent American investors, with ByteDance retaining a 19.9 percent stake. The DOJ memo now concludes that this restructured entity falls outside the scope of the 2022 government-device ban as well.

The OLC's reasoning turns on the word "ownership." Because the new venture is majority-held by American investors, the memo argues, it no longer shares what the office called the "problematic ownership features" of the original, fully Chinese-owned TikTok.

"Congress banned only the version of TikTok that shares the same problematic ownership features" as the original, Chinese-owned version.

The memo also acknowledged the president's instruction directly. OLC wrote:

"We understand you have since instructed that employees of Executive Branch agencies may download TikTok onto their official devices, subject to the agency's discretion and consistent with all applicable workplace policies."

ByteDance still controls the algorithm, and 19.9 percent of the company

The ownership math tells one story. The operational reality tells another. ByteDance retains a 19.9 percent stake in TikTok's new American venture, and the restructured platform still runs on a ByteDance-licensed algorithm, the recommendation engine that decides what 170 million American users see every time they open the app.

The OLC memo does not appear to address the algorithm question directly, at least based on the details made public. That gap has not gone unnoticed on Capitol Hill.

Congressman John Moolenaar, who heads the House Select Committee on China, released a statement shortly after TikTok announced its new venture. His tone was blunt:

"The Chinese Communist Party cannot be allowed to weaponize an app to divide and weaken our country."

Moolenaar pressed further, posing questions the OLC memo left unanswered:

"Does this deal ensure China does not have influence over the algorithm? Can the parties involved assure Americans their data is secure? Those are questions that need to be answered as the Select Committee does oversight of this deal."

Those are not hypothetical concerns. The entire legislative effort against TikTok, bipartisan, spanning two Congresses and upheld by the Supreme Court, rested on the premise that Chinese control of the app's algorithm and data pipeline posed an unacceptable risk. Whether a 19.9 percent stake and a licensed algorithm satisfy that concern is precisely the question Moolenaar's committee now intends to investigate.

Trump has never been shy about making moves that catch Washington off guard. His administration has reversed course on nominations and hearings with little warning before, and the TikTok decision fits a pattern of bold executive action followed by institutional scramble.

Investors and lawmakers push back from opposite directions

The resistance is not coming only from national-security hawks. Investors in Meta and Alphabet filed a lawsuit arguing that TikTok's restructured U.S. venture does not go far enough in reducing ByteDance's influence. Their complaint targets the same structural weakness Moolenaar identified: a deal that changes the ownership percentages without severing the operational link to Beijing.

The lawsuit's current status remains unclear, but its existence underscores a rare alignment. Silicon Valley shareholders and Republican China hawks are making the same argument, that a cosmetic restructuring is not the same as the full divestiture Congress demanded and the Supreme Court endorsed.

For an administration that has taken aggressive stances on national security in other arenas, the TikTok reversal stands out. The president who once tried to ban TikTok outright during his first term has now overseen a legal framework that puts the app back on federal phones.

Congress wrote two laws, and the executive branch set both aside

Step back and consider the sequence. In 2022, Congress passed a law to keep TikTok off government devices. In 2024, Congress passed a second law to force a full sale or shut TikTok down entirely. The Supreme Court backed Congress. And now, through a combination of executive non-enforcement and a DOJ legal opinion, both laws have been effectively neutralized, not repealed, not amended, just set aside by the branch tasked with executing them.

That is a significant exercise of executive discretion. The OLC memo provides the legal reasoning, but the practical effect is that a congressional mandate, upheld by the judiciary, has been overridden by a prosecutorial decision not to act and a legal opinion that redefines the target.

The broader pattern of sudden presidential pivots drawing intense media scrutiny is by now familiar. But this one carries unique weight because it touches the intersection of national security, Big Tech competition, and the separation of powers.

Whether TikTok's new structure genuinely severs Beijing's ability to influence what Americans see and harvest their data is an empirical question, one that the OLC memo answers with a legal theory about ownership percentages rather than an operational audit of the algorithm. Moolenaar's committee has signaled it intends to fill that gap.

Even some figures who have publicly reversed their views on Trump may find this particular decision harder to square with the administration's otherwise hawkish posture toward China.

Federal agencies now face a choice the law was supposed to make for them

Under the OLC memo, each federal agency retains discretion over whether to allow TikTok on its devices. That is a meaningful caveat. The Pentagon, the intelligence community, and agencies handling classified information may well keep their existing restrictions in place. But the legal barrier Congress erected, the blanket prohibition, is gone.

Federal employees across dozens of civilian agencies can now install an app that, eighteen months ago, Congress and the Supreme Court agreed posed a national-security threat serious enough to justify a ban. The only thing that changed in the interim is TikTok's ownership split, not the algorithm, not the data architecture, not the content-recommendation engine that security officials spent years warning about.

Congress wrote the law. The court upheld it. The executive branch decided it no longer applies. If that sequence does not bother you, ask yourself whether it would if the app were Russian instead of Chinese, and the algorithm still ran on code licensed from Moscow.