A federal judge has turned down President Donald Trump’s agreement with the Internal Revenue Service (IRS) that would let churches endorse political candidates without risking their tax-exempt status.
U.S. District Judge J. Campbell Barker, appointed by Trump, stated he doesn’t have the authority to approve the settlements involving the IRS, two Texas churches, and the National Religious Broadcasting Board (NRB), as reported by Reuters.
According to the proposed agreement, churches could communicate about political endorsements without being constrained by the Johnson Amendment, a part of the 1954 tax code instituted by then-Sen. Lyndon Johnson, which bars both religious and secular nonprofit organizations from endorsing political candidates.
The IRS had aimed to resolve a lawsuit filed by the NRB challenging the Johnson Amendment prior to the 2024 presidential election.
Ultimately, Judge Barker aligned with Americans for the Separation of Church and State, which opposed the settlement, arguing that existing tax injunction laws prohibited judicial approval.
“The law broadly forbids lawsuits aimed at preventing tax collection,” Barker noted, explaining that declaring the Johnson Amendment inapplicable to certain actions would affect tax revenue.
NRB General Counsel Michael Farris mentioned that the organization plans to appeal. He argues the judge’s ruling overlooks an exception in anti-injunction law that could allow the case to move forward.
Tony Perkins, president of the Family Research Council, stated that Barker missed a chance to correct a situation that undermines the country’s freedoms, especially on the 250th anniversary of its founding.
“He dismissed a consent decree between the NRB and the Department of Justice regarding the Johnson Amendment, which permits the IRS to limit churches’ free speech,” Perkins explained in a statement. “Fortunately, the NRB intends to appeal this decision in the Fifth Circuit Court of Appeals with full backing from the Family Research Council.”
Rachel Laser, president of Americans United for Separation of Church and State, commended Barker’s ruling, asserting it preserves the Johnson Amendment as a safeguard against the misuse of places of worship by religious extremists.
The IRS has not responded to requests for comment from Reuters.
Previously, President Joe Biden’s Justice Department supported the Johnson Amendment’s constitutionality, but the stance shifted under President Trump, who advocated for its repeal.
