A legal dispute over whether churches can endorse political candidates without jeopardizing their tax-exempt status under the Internal Revenue Service’s Johnson Amendment has intensified as the 2026 midterm elections approach. The amendment, added to the Internal Revenue Code in 1954, prohibits 501(c)(3) organizations, including churches, from participating “directly or indirectly” in political campaigns by endorsing or opposing candidates.

Since 2024, a coalition of religious groups and churches has challenged the IRS rule, alleging it infringes on their First Amendment rights to free speech and religious expression. The National Religious Broadcasters, along with the conservative Intercessors for America and two Texas churches—First Baptist Church Waskom and Sand Springs Church—filed a lawsuit seeking to allow churches greater political engagement.

In 2025, the parties reached a proposed settlement that would have reversed decades of IRS precedent, permitting churches to endorse candidates under specific conditions. The IRS characterized such endorsements as internal “family discussions” rather than political campaign intervention. However, in March 2026, a federal judge dismissed the case, ruling that courts lack authority to alter tax laws or carve out exemptions for plaintiffs. Following the dismissal, the Trump administration announced plans to issue new guidance to clarify how the Johnson Amendment applies to religious organizations, reaffirming its commitment to protecting religious freedom. As of late July, that guidance had not been released, and the plaintiffs filed an appeal, criticizing the dismissal as unexpected and detrimental to their cause.

The dispute highlights ongoing tensions between religious liberty advocates and those urging strict enforcement of the Johnson Amendment. Critics argue the IRS selectively applies the rule, disproportionately scrutinizing conservative religious groups while overlooking violations on the political left. For instance, Rev. Jamal Bryant of New Birth Missionary Baptist Church in Georgia condemned what he described as a “double standard” in enforcement, noting that religious institutions across ideological lines face unequal treatment. Meanwhile, watchdog organizations such as the Freedom From Religion Foundation have documented numerous alleged violations by churches, primarily conservative ones, and have pushed the IRS to investigate related cases, including one involving Sheridan Church in Oklahoma.

Leaders on all sides express concerns about the potential ramifications of loosening or strictly enforcing the Johnson Amendment. Some, like retired United Methodist Bishop Julius C. Trimble, warn that allowing political endorsements could undermine churches’ roles as unifying moral voices and risk transforming them into politically charged entities akin to super PACs. Legal counsel for the Freedom From Religion Foundation also cautioned about the potential for political organizations to game tax-exempt status by masquerading as religious institutions.

Conversely, proponents of change argue the amendment chills both speech and charitable giving by creating an unpredictable threat of tax status revocation. Representatives of the Billy Graham Evangelistic Association, a conservative religious organization frequently aligned with Republican figures, say that political involvement is a vital aspect of their mission and that complaints against them are attempts at intimidation.

As the midterms near, many faith communities are navigating these legal gray areas while making decisions about their political engagement. Some denominations, such as the United Church of Christ and the United Methodist Church, promote nonpartisan voter participation efforts and offer resources designed to mobilize congregants without crossing into prohibited political endorsements.

The resolution of the National Religious Broadcasters’ lawsuit could have lasting consequences for the relationship between religion and politics in the United States, potentially reshaping the scope of permissible political activity for tax-exempt religious organizations.