A federal judge in Texas has dismissed a lawsuit that would have allowed churches to support political candidates without losing their tax-exempt status.
case challenged johnson amendmentA 1954 law that prevents 501(c)(3) nonprofits from endorsing political candidates was filed in August 2024 by the National Religious Broadcasters (NRB), two Texas churches, and Intercessors for America.
The plaintiffs argued that the Johnson Amendment violates the rights to free speech and free exercise of religion under the First Amendment of the U.S. Constitution, is unconstitutionally vague under the Fifth Amendment, and violates the Religious Freedom Restoration Act.
The US Justice Department attempted to dismiss the case in the final weeks of the Biden administration.
However, after President Trump took office in January 2025, his administration revived the case..
The Internal Revenue Service (IRS) and the U.S. Department of Justice changed their positions and argued in favor of the plaintiffs that the Johnson Amendment should be read narrowly when applied to churches.
Last summer, the IRS surprised some observers by agreeing to a settlement overturning a 70-year-old ban barring nonprofits from getting involved in political campaigns.
On July 7, 2025, the government and the plaintiffs filed A joint motion to enter into consent judgment This would have allowed houses of worship to address electoral politics from the platform in the context of religious faith and moral teaching and without the risk of loss of their tax-exempt status.
However, in an opinion issued March 31, U.S. District Judge J. Campbell Barker ruled that the district court lacked subject-matter jurisdiction to approve the proposed consent judgment between the plaintiffs and the IRS or grant the requested relief.
The case was dismissed without prejudice. Barker, a Trump appointee and former Texas deputy solicitor general, said plaintiffs could challenge the issue in other ways. They may sue after paying taxes or after loss of tax-exempt status as a result of a violation of the Johnson Amendment.
The judge cited restrictions in the Anti-Tax Injunctions Act and the Declaratory Judgment Act, which generally prevent federal courts from issuing orders that would stop the assessment or collection of taxes – including challenges to the terms of maintaining a 501(c)(3) tax-exempt status.
In reference to the Trump administration’s support for last summer’s agreement, NRB General Counsel Michael Farris said the organization was surprised by the decision and plans to appeal to the 5th Circuit Court of Appeals.
“President Donald J. Trump has repeatedly touted the settlement of this case as a victory for his administration’s religious freedom,” he said.
“Plaintiffs here have no other forum to challenge the free speech restrictions imposed by the Johnson Amendment on the right of nonprofits to speak about candidates unless they first violate the law and then are subject to IRS enforcement action. No person should be forced to expose themselves to legal jeopardy to protect their constitutional rights,” Farris stressed, adding that the U.S. Supreme Court “has supported this conclusion on numerous occasions.”
USCCB response
The U.S. Conference of Catholic Bishops (USCCB) immediately reacted to the proposed agreement last summer. On July 8, 2025, USCCB spokesperson Chieko Noguchi, executive director of public affairs, indicated that the church will not, in any case, endorse or oppose political candidates.
“This does not change how the Catholic Church engages in public debate,” Noguchi said at the time. “The Church seeks to help Catholics form their conscience in the Gospel so they can understand which candidates and policies will advance the common good. The Catholic Church remains steadfast in its stance of not endorsing or opposing political candidates.”
The March 31 decision leaves the provision intact for now, at least as implemented through the tax code.
