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Key Takeaways

  • A federal judge dismissed a lawsuit challenging the Johnson Amendment, which prohibits tax-exempt non-profits from endorsing political candidates.
  • The ruling upholds the Johnson Amendment, a 1954 law designed to maintain the separation of church and state in tax code.
  • The judge, Cam Barker, ruled he lacked authority to approve a proposed consent judgment between churches and the IRS because federal law prevents judges from blocking taxation that hasn’t occurred yet.
  • The plaintiffs argued the law violated their First Amendment rights, while the judge emphasized proper legal avenues for challenging tax issues require paying taxes first or disputing loss of status.
  • The decision prevents a significant public policy shift that would have allowed churches to openly engage in electoral politics without losing tax-exempt status.
A federal judge in Tyler just hit the brakes on a big effort that would’ve let churches openly endorse political candidates without risking their tax-exempt status. It’s a win for the long-standing rule known as the Johnson Amendment, a law that’s been part of our tax code since 1954. If you're wondering, it’s named after then-Texas Senator Lyndon Johnson, who first put it forward. Here’s what went down: several Texas churches and some national Christian groups took the IRS to court. They argued that stopping them from endorsing candidates from the pulpit – and keeping their tax breaks – was a direct violation of their First Amendment rights. They felt their religious beliefs required them to speak on all parts of life, including politics. What’s interesting is how the government’s stance shifted. When the Biden administration was leaving office, they wanted this case thrown out. But then the Trump administration not only brought it back but actually sided with the churches. Both sides then went to the judge, asking him to approve a deal. This deal would have essentially allowed the IRS to stop enforcing the Johnson Amendment against these particular churches. If that deal had gone through, it would have been a really big deal. Pastors would’ve had more power to push political views from their pulpits, potentially changing the game for how churches interact with elections. It would have shaken up a core part of U.S. tax law that’s been around for decades. But District Judge Cam Barker, who was appointed by Trump and used to be Texas’s deputy solicitor general, said no. He ruled that he simply didn't have the legal power to approve their proposed agreement. His reasoning? Federal laws generally stop judges from blocking taxes that haven't even been collected yet. Typically, if you want to challenge a tax, you have to pay it first and then sue to get a refund. It’s a process. Barker didn't buy the argument that these rules shouldn’t apply just because both sides agreed on the judgment. He wrote that letting churches off the hook for potentially violating the Johnson Amendment directly affects how much tax money could be collected. He was clear: if the churches gave up their tax-exempt status, the problems they were complaining about wouldn’t even exist. So, the tax exemption is tied directly to the political endorsement rule. He pointed out that churches still have options if they want to fight this. They could, for instance, sue *after* taxes are collected or after their tax-exempt status is actually taken away for a violation. But, as he saw it, this wasn't the right legal path to challenge it, no matter how much both the churches and the government wanted it to be. Groups like Americans United for Separation of Church and State, which tried to get involved in the case, were happy with the judge’s decision. Rachel Laser, their president, said it keeps the Johnson Amendment strong, helping stop what she called “religious extremists” from using houses of worship inappropriately. She also raised a good point: a deal that only exempted churches, but not other non-profits, wouldn’t be fair and could mess with the separation of church and state. Even before the court made its final call, some conservative Christian pastors were already talking about it as a win and getting ready to ramp up their political talk. Others, like the U.S. Conference of Catholic Bishops, made it clear they'd keep candidate endorsements out of their sermons, no matter what happened in court. It’s worth noting that the Johnson Amendment hasn’t always been strictly enforced, whether we had Democrats or Republicans in charge. In fact, a past report by The Texas Tribune and ProPublica found many examples of churches breaking the rule, often more than the IRS had even looked into in a decade. This ruling, then, isn’t about changing enforcement habits, but about upholding the foundational legal structure that supports those habits.