Religious Liberty Commission Draft Keeps Pressure on Johnson Amendment

President Donald Trump’s Religious Liberty Commission recommended repealing the Johnson Amendment in a draft report delivered June 26, but the tax restriction remains in effect as the 2026 election cycle approaches.

The commission’s report is advisory. It does not amend the Internal Revenue Code, change the tax status of churches or authorize tax-exempt organizations to endorse or oppose candidates using official organizational resources.

What the commission proposed

The commission said its draft followed seven hearings and testimony from more than 100 witnesses. Its 12 recommendations include repeal of the Johnson Amendment, new Justice Department guidance on the Establishment Clause and church-state relations, religious-liberty complaint portals, written explanations when officials allege improper religious expression and stronger protections for religious expression.

The report also recommends a Justice Department task force focused on religious-liberty litigation, additional action against antisemitism, changes to military religious-accommodation procedures and new presidential awards recognizing religious-liberty advocates.

The Justice Department said the commission delivered its final draft report to the president on June 26. The report says a final version will be published after a public-comment period. The document therefore remains a draft recommendation, not a law or final agency rule.

What the Johnson Amendment does

The Johnson Amendment is the tax-law provision that bars organizations exempt under Section 501(c)(3) from participating or intervening in political campaigns on behalf of or against candidates for public office.

Churches are a subset of 501(c)(3) organizations. They receive certain special tax and filing protections, but they remain subject to the campaign-intervention restriction as a condition of tax exemption.

The rule does not prohibit every discussion of elections, candidates or public issues. IRS guidance distinguishes campaign intervention from issue advocacy, educational activity and religious communications that address moral or political questions without supporting or opposing a candidate.

For churches and religious nonprofits, practical questions can include whether an endorsement is made on behalf of the organization, whether organizational staff or assets are used, and whether a communication favors or opposes a clearly identified candidate.

What the recent court case decided

A related case, National Religious Broadcasters v. Bessent, did not strike down or uphold the Johnson Amendment. On March 31, 2026, the U.S. District Court for the Eastern District of Texas dismissed the case for lack of jurisdiction under federal tax-law restrictions, including the Tax Anti-Injunction Act and the Declaratory Judgment Act.

The court therefore did not resolve the plaintiffs’ constitutional claims on the merits. The plaintiffs later appealed the dismissal to the U.S. Court of Appeals for the Fifth Circuit, according to the Congressional Research Service.

CRS described the case as part of a broader debate over how the IRS enforces the political-campaign restriction against churches. The Treasury Department and IRS have also said they plan to develop additional guidance on how the Johnson Amendment applies to religious organizations, including certain communications made within religious services. That plan is not a repeal of the restriction.

How the July DOJ guidance fits

The Justice Department’s updated religious-liberty guidance announced July 23 is a separate administration action. It directs federal agencies to account for religious-liberty protections in programs, employment practices, contracting, rulemaking and enforcement. It also addresses safeguards for religious organizations in federal contracting and grant programs.

The guidance does not repeal or amend the Johnson Amendment and does not authorize campaign intervention by tax-exempt organizations.

What organizations should watch

Nothing in the commission’s draft report immediately changes the rules for tax-exempt churches or religious nonprofits. Organizations planning election-season events, sermons, voter education, candidate forums or public statements should continue using current tax and legal guidance.

The proposal could become consequential only through a formal change such as congressional action, binding tax guidance, litigation or another legally effective policy step. Until then, candidate endorsements or opposition made through an organization’s official communications, staff time or other resources may raise Johnson Amendment concerns.

The next milestones include the commission’s final report, the public-comment process, the pending litigation and any response from Congress, Treasury or the IRS. The July 23 Justice Department guidance may affect federal agency interactions with religious organizations, but it has not repealed the tax restriction.

Sources

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