The Trump administration announced Friday that it will "provide additional clarity and guidance" to religious organizations after a federal judge's decision this week to dismiss a case seeking to overturn the 70-year-old ban on political activity by houses of worship.
The Treasury Department and Internal Revenue Service issued a statement saying the move is aimed at reinforcing First Amendment protections while helping churches better understand how existing law applies to their communications.
"Religious liberty is foundational to our Constitution," Treasury Secretary Scott Bessent said, adding that the administration is committed to ensuring Americans can "practice one's faith openly and in community" while laws are applied fairly.
The new guidance will focus on clarifying how the Johnson Amendment, the 1954 law that restricts tax-exempt organizations from endorsing political candidates, applies in real-world settings, particularly within religious services.
According to Treasury, internal communications between houses of worship and their congregations, when delivered through customary religious channels and tied to matters of faith, may not constitute prohibited political activity under current interpretations of the law.
The announcement comes after a federal judge in Texas on Tuesday dismissed a lawsuit brought by conservative religious groups that sought to overturn or weaken the Johnson Amendment.
The court ruled the case could not proceed on procedural grounds, leaving lingering uncertainty about how aggressively the IRS will enforce the rule going forward, The New York Times reported.
The Trump administration had previously signaled support for a more flexible interpretation of the law, arguing that sermons or faith-based guidance delivered during religious services should not automatically jeopardize a church's tax-exempt status.
That position was welcomed by many conservative groups, who have long argued the Johnson Amendment unfairly restricts free speech and religious expression.
Critics, however, say loosening the rule could blur the line between churches and political organizations.
Under current IRS rules, 501(c)(3) organizations — including churches — are prohibited from directly or indirectly participating in political campaigns for or against candidates.
However, they are allowed to engage in issue advocacy and limited lobbying, as long as it does not cross into campaign activity.
The IRS has historically enforced the rule inconsistently, with many religious leaders opting to avoid direct endorsements altogether out of caution.
Friday's announcement signals that the Trump administration is seeking to strike a balance — preserving the law while offering clearer boundaries that protect religious speech.
Treasury officials said they will consult with stakeholders before finalizing the guidance later this year, underscoring the administration's broader push to defend religious liberty while maintaining the integrity of the tax system.
For many faith leaders, the forthcoming guidance could provide long-sought clarity on how to navigate one of the most complex intersections of religion, politics, and federal law — without risking penalties or losing their tax-exempt status.
Charlie McCarthy ✉
Charlie McCarthy, a writer/editor at Newsmax, has nearly 40 years of experience covering news, sports, and politics.
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