Tax-exempt churches are renewing their legal fight to overturn a decades-old ban on political endorsements, with plaintiffs formally appealing a dismissed lawsuit in July as the midterm campaign heats up. The National Religious Broadcasters, the conservative advocacy group Intercessors for America, and two Texas churches—First Baptist Church Waskom and Sand Springs Church—filed the appeal on July 7, seeking to revive their case against the Internal Revenue Service over the so-called Johnson Amendment.
The lawsuit, originally filed in August 2024, challenges a 1954 tax provision that bars all 501(c)(3) nonprofits, including churches and charities, from “directly or indirectly” participating in politics or endorsing candidates. The plaintiffs argue the rule violates their First Amendment rights to freedom of speech and freedom of religion, according to USA Today.
The parties reached a proposed settlement in 2025 that would have reversed decades of legal precedent. In court documents, the IRS said political endorsements made by a church would not be seen as “participating” or “intervening” in political campaigns, but instead as a “family discussion concerning politics,” according to USA Today. However, a federal judge dismissed the entire case in late March 2026, ruling that courts do not have jurisdiction to change the tax status of a plaintiff or create exemptions from tax laws.
The dismissal came as a surprise to conservatives who had expected a victory after the IRS settlement. Days later, President Donald Trump’s administration announced it would issue guidance on the Johnson Amendment for religious organizations, saying it would “continue to protect religious freedom as a fundamental right,” according to a Treasury Department press release cited by USA Today. That guidance has not yet been released as of late July.
The Johnson Amendment’s History and Enforcement
The Johnson Amendment, named after former President Lyndon B. Johnson who introduced it when serving as U.S. Senate majority leader, has been part of the tax code since 1954. Despite its 70-year history, the rule has rarely been enforced. A New York church did lose its tax-exempt status after it took out newspaper advertisements to discourage Christians from supporting former President Bill Clinton in the 1992 election, according to USA Today. The church lost both its initial case and its appeal.
In recent years, the Freedom From Religion Foundation has filed scores of complaints to the IRS about alleged Johnson Amendment violations. In June 2026, the foundation asked the agency to investigate Sheridan Church in Tulsa, Oklahoma, after Pastor Jackson Lahmeyer said supporters could pick up campaign signs for his congressional bid at the church, according to USA Today. The foundation has also criticized Rev. Jamal Bryant of New Birth Missionary Baptist Church in Georgia for what it characterized as efforts to secure votes for political candidates.
Religious leaders across the ideological spectrum have condemned what they describe as selective scrutiny of their institutions. In an April interview with USA Today, Rev. Bryant condemned what he said was a “double standard” when it comes to the Johnson Amendment, saying “it is very selective, how it has been used in American discourse.” Bryant also noted that the Black church has historically been a space for “both worship and witness, sanctuaries and staging grounds for social change.”
The Stakes for Religious Freedom and Political Speech
Leaders on all sides of the debate say the outcome of the National Religious Broadcasters lawsuit could reshape American church and political life. Retired United Methodist Church Bishop Julius C. Trimble warned that opening the door for political money to influence churches could limit what he described as faith communities’ prophetic and unifying role in society. Chris Line, legal counsel for the Freedom From Religion Foundation, similarly feared that churches could “just turn into super PACs” if permitted to endorse political candidates as tax-exempt entities.
Defenders of relaxing the rule argue the Johnson Amendment has negative constitutional and financial implications for religious organizations. Justin Arnot, general counsel for the Billy Graham Evangelistic Association, said the since-tossed settlement would have simply compelled the IRS “not to enforce it in random or arbitrary ways against houses of worship.” Arnot also noted that the threat of revocation could chill both speech and charitable giving.
As the midterms draw closer, religious organizations are making their own decisions about political involvement. The United Church of Christ created a toolkit to support “nonpartisan faithful engagement” in the midterms, while the United Methodist Church has long offered resources and allowed individual churches to host voter registration drives to boost civic participation, according to USA TODAY.
Sources
- USA Today — Original reporting on the lawsuit renewal, settlement history, judge dismissal, IRS guidance announcement, Johnson Amendment history and enforcement, religious leaders’ statements, and church activities
- Treasury Department — Trump administration announcement on Johnson Amendment guidance for religious organizations
