IRS Allows Churches Limited Political Endorsements in Consent Decree

On July 7, 2025, the IRS issued a landmark legal declaration and entered into a consent decree that effectively allows churches and other houses of worship to endorse political candidates without risking the loss of their 501(c)(3) tax-exempt status, marking a significant shift from the longstanding Johnson Amendment of 1954. This amendment previously prohibited tax-exempt organizations, including churches, from participating in political campaigns or endorsing candidates, aiming to maintain separation of church and state and prevent tax-deductible political donations. The recent IRS consent decree arose from litigation by conservative religious groups claiming that the Johnson Amendment violated their First Amendment rights, leading the IRS to agree that houses of worship may discuss electoral politics through the lens of religious faith in customary communications with their congregations. While enforcement of the Johnson Amendment has historically been rare and often minimal, this new IRS position invites churches to more openly engage in political endorsements, creating potential new tests of constitutional free speech and religious liberty protections. Experts note that this shift could lead to increased church involvement in politics, raising questions about the boundaries of political speech in religious contexts and the future role of tax-exempt status in regulating such activities. This development has sparked debate about balancing religious expression with the separation of church and state, reflecting deep divisions on the amendment's impact and the proper scope of political activity by religious organizations.