The Internal Revenue Service has made a groundbreaking announcement that fundamentally changes how religious organizations can participate in political discourse. In a major policy shift announced on July 8, 2025, the IRS declared that churches and other houses of worship can now endorse political candidates to their congregations without risking their tax-exempt status.
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What is the IRS Church Endorsement Ruling?
The IRS announced in a federal court filing that it will allow houses of worship to endorse candidates for political office without losing their tax-exempt status. This decision represents a significant departure from decades of tradition under the Johnson Amendment, which has prohibited such political activities since 1954.
The Johnson Amendment Background
Since 1954, the IRS has banned nonprofits — including congregations — from participating in political campaigns. The Johnson Amendment, named after then-Senator Lyndon B. Johnson, established strict rules that prohibited 501(c)(3) tax-exempt organizations from endorsing or opposing political candidates.
Latest Updates on the Court Filing
The federal court filing is part of a proposed settlement of a lawsuit filed by the National Religious Broadcasters and a pair of Texas churches that sought to overturn the Johnson Amendment. This settlement marks a historic compromise between religious freedom advocates and federal tax policy.
The IRS made a crucial distinction in their ruling, stating that political speech during religious services is not the same as intervening or participating in campaigns. This interpretation creates a new framework for understanding how churches can engage in political discourse while maintaining their tax-exempt status.
Key Implications of the Ruling
For Religious Organizations
Churches and other houses of worship registered as tax-exempt nonprofits can now:
- Endorse political candidates during religious services
- Discuss political matters within their usual channels of communication
- Engage in political speech without fear of losing tax benefits
For the Political Landscape
This ruling could significantly impact future elections by:
- Allowing religious leaders to officially endorse candidates from the pulpit
- Expanding the role of faith-based organizations in political campaigns
- Creating new opportunities for voter mobilization through religious channels
Trump Administration’s Influence
President Donald Trump has said he wanted to get rid of the Johnson Amendment and signed an executive order in 2017 directing Treasury to disregard the rule. The current ruling aligns with the Trump administration’s broader push to reduce restrictions on religious organizations’ political activities.
What This Means for Tax-Exempt Status
Previously, the IRS said that a public statement from a church on behalf of a candidate or in opposition to a candidate was a clear violation of the law and “absolutely prohibited”. The new interpretation removes this absolute prohibition, creating a more nuanced approach to religious political speech.
Enforcement History
It’s worth noting that the IRS has generally not enforced the Johnson Amendment against houses of worship for speech related to electoral politics. This latest ruling formalizes what had been an unofficial policy of non-enforcement.
Looking Forward
This policy change represents one of the most significant shifts in the relationship between religious organizations and political activity in modern American history. Religious leaders and legal experts are still analyzing the full implications of this ruling, particularly regarding:
- The scope of permissible political activities
- Potential challenges from secular organizations
- Future court cases that might further define these boundaries
- The impact on other types of nonprofit organizations
Conclusion
The IRS church endorsement ruling of July 2025 marks a pivotal moment in American religious and political history. By allowing churches to endorse political candidates without losing their tax-exempt status, the IRS has effectively created a new exception to the Johnson Amendment. This development will likely reshape how religious organizations engage in political discourse and could have far-reaching implications for future elections.
Religious leaders, political candidates, and legal experts will be watching closely to see how this policy is implemented and what additional guidance the IRS may provide. As this story continues to develop, it’s clear that the intersection of faith and politics in America has entered a new era.
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