The Trump administration signaled Wednesday it may change the Corporate Transparency Act to make it less burdensome for “low-risk entities,” while still targeting threats to national security.

The Justice Department and Treasury Department, in coordination, stated the law could be modified, breaking with the position the departments held under the Biden administration.

“As a matter of policy, Treasury continues to assess the potential burden of the final rule,” the Justice Department stated in a court filing.

The act requires the owners and top employees of small corporations, including farms and ranches, to submit photo identification and other personal information to the Financial Crimes Enforcement Network, a unit in the Treasury Department.

The act has drawn lawsuits in federal courtrooms across the county, with plaintiffs claiming the law is an unconstitutional overreach by Congress and violates civil liberties.

The U.S. Supreme Court lifted one preliminary injunction blocking the rule, but the law remains on hold because of another preliminary injunction issued Jan. 7 by U.S. District Judge Jeremy Kernodle in Tyler, Texas.

After a post-Inauguration Day shuffle in lawyers, the Justice Department asked Kernodle to lift his injunction, but only to help the Treasury Department move ahead with reevaluating the law.

The Treasury Department posted a notice stating it would take 30 days to “assess its options to modify further deadlines or reporting requirements for lower-risk entities, including many small businesses, while prioritizing reporting for those entities that pose the most significant national security risks.”

Congress passed the act in late 2020 to uncover shell companies fronting for drug traffickers, human smugglers, terrorists, tax and sanction evaders, and other high-level criminals.

The law applies to state-registered entities with fewer than 20 workers or annual revenue of less than $5 million. The Treasury Department estimates 32.6 million entities must register.

The Biden administration vigorously defended the law in court as vital to combat crime and to bring the U.S. in compliance with international anti-money laundering standards.

The Treasury Department set the first reporting deadline for Dec. 31, 2024, but federal court rulings have put the law in limbo.

Some Democrats, including Sen. Ron Wyden, D-Oregon, defended the law in friend-of-the court briefs. Republicans in the House and Senate have introduced bills to repeal the act.