TYLER, Texas — A federal judge on Tuesday dismissed a lawsuit filed by Texas churches and religious groups seeking to allow endorsements of political candidates without losing tax-exempt status, ruling that the court lacked authority to approve a proposed agreement involving the Johnson Amendment.
U.S. District Judge Cam Barker said federal law bars courts from intervening in tax matters before taxes are assessed, rejecting a joint request by the plaintiffs and the Internal Revenue Service to approve a consent judgment that would have prevented enforcement of the provision against the churches involved.
The lawsuit, brought by several Texas churches and national Christian organizations, argued that the Johnson Amendment violates First Amendment rights by restricting religious leaders from discussing or endorsing political candidates while maintaining tax-exempt status under Section 501(c)(3). The law, enacted in 1954 and proposed by then-Sen. Lyndon B. Johnson, prohibits nonprofits from supporting or opposing political candidates.
The U.S. Department of Justice initially moved to dismiss the case during the administration of Joe Biden, but later reversed course under President Donald Trump and supported the plaintiffs’ position. Both sides asked the court to approve a settlement in which the IRS would not enforce the law against the churches.
Barker ruled that granting such relief would directly affect potential tax collection, which courts cannot preempt. He said plaintiffs could instead challenge the law after paying taxes or contesting the loss of tax-exempt status.
Americans United for Separation of Church and State, which sought to intervene in the case, welcomed the decision. Its president, Rachel Laser, said the ruling preserves existing limits on political activity by tax-exempt religious organizations.
The decision leaves the Johnson Amendment in place. Enforcement of the provision has historically been limited across administrations.
