A federal judge on Tuesday dismissed a settlement between President Donald Trump’s Internal Revenue Service (IRS) that would have allowed churches to endorse political candidates to their congregations without risking their tax-exempt status.
U.S. District Judge J. Campbell Barker in Tyler, an appointee of President Trump, ruled he lacked jurisdiction to approve the pact between the IRS and two Texas churches and the National Religious Broadcasters (NRB), Reuters reported.
Under the proposed agreement, traditional religious communications would have been deemed exempt from the Johnson Amendment, a 1954 tax code provision named after then-Sen. Lyndon Johnson that bars religious and secular nonprofits from endorsing political candidates.
The IRS entered into the pact in July to settle a lawsuit brought by NRB ahead of the 2024 presidential election, challenging the Johnson Amendment, according to the report.
Barker ultimately sided with opponents of the agreement, Americans United for Separation of Church and State, who argued the judge was blocked from approving the deal by the Tax Anti-Injunction Act.
“That law broadly prohibits lawsuits that seek to block the collection of taxes. And Barker said that declaring the Johnson Amendment does not apply to specific conduct ‘would thus directly bear on the amount of tax that could be collected,’” the report details.
Michael Farris, NRB’s general counsel, said the organization plans to appeal, arguing that the judge’s decision ignores an Anti-Injunction Act exemption that would allow the case to move forward.
Family Research Council president Tony Perkins said Barker “regrettably sidestepped an opportunity, on the 250th anniversary of our nation, to correct a wrong that strikes at the very heart of American freedom.”
“He rejected a consent decree between the National Religious Broadcasters (NRB) and the Justice Department addressing the so-called Johnson Amendment, which empowers the IRS to restrict the free speech rights of churches and religious ministries,” Perkins explained in a statement. “Fortunately, NRB plans to appeal this decision to the Fifth Circuit Court of Appeals, and they will have the full support of Family Research Council in that effort.”
Rachel Laser, the president of the Americans United for Separation of Church and State, praised Barker’s decision to dismiss the case, saying it means “the Johnson Amendment will remain a strong bulwark to stop religious extremists from exploiting houses of worship.”
The IRS did not respond to a request for comment from Reuters.
President Joe Biden’s DOJ previously defended the constitutionality of the Johnson Amendment. The DOJ changed direction under President Trump, who has called for the tax code to be repealed.
Katherine Hamilton is a political reporter for Breitbart News. You can follow her on X @thekat_hamilton.
