A federal court in the Eastern District of Texas has approved a landmark consent judgment that restricts the Internal Revenue Service (IRS) from enforcing the so-called Johnson Amendment against certain churches for speech delivered during religious services. 

The Johnson Amendment, a provision of the Internal Revenue Code (§ 501(c)(3)), prohibits tax-exempt organizations—including churches—from participating in or intervening in political campaigns on behalf of or in opposition to any candidate for public office. Plaintiffs in this case, including the National Religious Broadcasters, Intercessors for America, Sand Springs Church, and First Baptist Church Waskom, challenged the amendment, arguing it infringed on their First Amendment rights to free speech and free exercise of religion, as well as protections under the Fifth Amendment and the Religious Freedom Restoration Act.

The court recognized that when a house of worship speaks to its congregation through customary channels during religious services about electoral politics from a faith-based perspective, it does not constitute “participation” or “intervention” in a political campaign as defined by the amendment.

The IRS is prohibited from penalizing the plaintiff churches for internal communications to their congregations about electoral politics, provided these communications occur in the context of religious services and reflect the church’s religious teachings.

The judgment cites the doctrine of constitutional avoidance, emphasizing that a broad interpretation of the Johnson Amendment could create constitutional issues by favoring religions that avoid political topics over those that address them as part of their faith.

The parties have waived their rights to appeal, and the consent judgment serves as a final resolution of the dispute. Legal experts suggest this case could serve as a precedent for similar challenges and may prompt further discussion on the boundaries of religious speech and political activity in the nonprofit sector.