Just days after a federal judge dismissed a political speech case brought by several Christian ministries, the U.S. Treasury Department announced the IRS will develop “clear, administrable standards” on the matter for churches. The agency anticipates “it will engage with stakeholders as appropriate” as it develops this new guidance. 

“President Trump and this administration continue to protect religious freedom as a fundamental right in principle and in practice as our laws are applied,” said U.S. Treasury Secretary Scott Bessent. “Treasury and the IRS will provide additional clarity and guidance to houses of worship that reflect these ideals and uphold the First Amendment.” 

The court action preceding this announcement centered on a constitutional challenge to the Johnson Amendment, a law that generally prohibits 501(c)(3) organizations from engaging in partisan political campaign activity. The IRS had turned heads last year when, in an attempt to settle the case, it suggested that houses of worship do not violate the law when they discuss electoral politics through their usual religious service communications channels. In a joint filing with the plaintiffs, who are led by National Religious Broadcasters, the agency compared these faith-based communications between a church and its congregation to “a family discussion concerning candidates.” 

The court, however, chose not to approve this settlement. U.S. District Judge J. Campbell Barker explained that, in his view, his court did not have the jurisdiction to issue a ruling. Stating that “this case involves eligibility for federal tax benefits,” he cited statutes that require lawsuits challenging taxes to be pursued only after paying the disputed liabilities. Barker said NRB and its colleagues “rely on a false dichotomy in arguing that ‘[i]t is their speech, not their money, that is at stake here.’”  

“The rights underlying plaintiffs' claims for relief arise under the First Amendment as well as the Fifth Amendment and RFRA,” said the judge. “But the relief sought is from the allegedly threatened enforcement of a condition for tax benefits.” 

Michael Farris, NRB General Counsel, countered in a press release, “No person should be forced to place themselves in legal jeopardy to protect their constitutional rights. And the Supreme Court has backed this conclusion on numerous occasions.”  

“The plaintiffs will file an appeal to the United States Court of Appeals for the Fifth Circuit shortly,” he said. 

ECFA will continue to carefully monitor developments related to the Johnson Amendment at the IRS, in the courts, and on Capitol Hill.