A federal judge on Tuesday tossed an agreement from President Donald Trump’s Internal Revenue Service (IRS) that would have created an exemption to the Johnson Amendment and allowed churches to endorse political candidates to their congregations without risking their tax-exempt status.
In response, the U.S. Department of the Treasury and the IRS are planning to develop additional guidance for churches and religious organizations on the application of the Johnson Amendment, Breitbart News has exclusively learned.
“Religious liberty is foundational to our Constitution, and the freedom to practice one’s faith openly and in community is central to the American story as we celebrate 250 years of independence as a nation this year,” Treasury Secretary Scott Bessent told Breitbart News.
“As many Americans gather to observe Holy Week and Passover, President Trump and this administration continue to protect religious freedom as a fundamental right in principle and in practice as our laws are applied. Treasury and the IRS will provide additional clarity and guidance to houses of worship that reflect these ideals and uphold the First Amendment,” Bessent added.
Under the proposed agreement, traditional religious communications would have been deemed exempt from the amendment, a 1954 tax code provision named after then-Sen. Lyndon Johnson that bars religious and secular nonprofits from endorsing political candidates.
U.S. District Judge J. Campbell Barker in Tyler, an appointee of President Trump, ruled he lacked jurisdiction to approve the pact between the IRS and two Texas churches and the National Religious Broadcasters (NRB). He did not rule on the merits of the case.
The IRS entered into the pact in July to settle a lawsuit brought by NRB ahead of the 2024 presidential election, challenging the Johnson Amendment. President Joe Biden’s DOJ previously defended the constitutionality of the Johnson Amendment. The DOJ changed direction under President Trump, who has called for the tax code to be repealed.
Michael Farris, NRB’s general counsel, said the organization plans to appeal, arguing that the judge’s decision ignores an Anti-Injunction Act exemption that would allow the case to move forward.
Family Research Council president Tony Perkins said Barker “regrettably sidestepped an opportunity, on the 250th anniversary of our nation, to correct a wrong that strikes at the very heart of American freedom.”
“He rejected a consent decree between the National Religious Broadcasters (NRB) and the Justice Department addressing the so-called Johnson Amendment, which empowers the IRS to restrict the free speech rights of churches and religious ministries,” Perkins explained in a statement. “Fortunately, NRB plans to appeal this decision to the Fifth Circuit Court of Appeals, and they will have the full support of Family Research Council in that effort.”
Treasury and the IRS did not provide an exact timeline for the new guidance but said it is “forthcoming” and “will provide clear, administrable standards for houses of worship, including how the law applies to certain communications made within the context of religious services.”
The agencies said they will engage with stakeholders as it is appropriate, as they work to develop guidance and will determine its release “later this year.”
Katherine Hamilton is a political reporter for Breitbart News. You can follow her on X @thekat_hamilton.
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