Trump overturned it for the Social Security Administration. The Veterans Administration was doing it on their own initiative, not pursuant to any congressional mandate, and I don't know if Trump (or anyone) has told the VA to stop doing it.
The rule, which was finalized in December, added people receiving Social Security checks for mental illnesses and people deemed unfit to handle their own financial affairs to the national background check database.
The part I highlighted was the issue. All that referred to was people who designated someone else to receive their check from the government each month. Difficulty balancing a checkbook does not equate to mental illness. It might be a person who was never good at math and whose spouse always handled the finances, until said spouse died. Then the poor widow(er) is stuck trying to do finances that he/she never did before, so they ask a son or daughter or grandchild to handle it.
And for that they get put on the NICS list as "mentally defective."
The VA started doing the same thing with people who had a "designated recipient" for military pension checks.
Although Trump got the law overturned, I don't know if that did anything to remove the names from the list of people who were reported while the law was in effect. Since the law addressed only Social Security, I don't know if the VA has stopped. If they have, I haven't noticed anything reported in the VFW magazine.