A federal judge in Tyler, Texas, on Tuesday dismissed a lawsuit seeking to permit churches to endorse political candidates without forfeiting their tax-exempt status. This decision represents a setback for the Trump administration and conservative groups advocating for the removal of restrictions on nonprofit political activity.

The Challenge to the Johnson Amendment

Several Texas churches and national Christian organizations filed the lawsuit, arguing that the Johnson Amendment – a law prohibiting nonprofits from endorsing or opposing political candidates – violated their First Amendment rights. They contended that their religious beliefs required them to address all aspects of life, including politics, with their congregations.

A Shifting Stance from Washington

Initially, the Department of Justice under the Biden administration sought to dismiss the case. However, the Trump administration reversed course, not only reviving the lawsuit but also aligning with the plaintiffs. Both sides proposed a consent judgment where the IRS would refrain from enforcing the Johnson Amendment against the participating churches.

Judge Barker's Ruling

District Judge Cam Barker, a Trump appointee, ultimately rejected the proposed agreement. He determined he lacked the authority to approve it, citing federal laws that prevent judges from preemptively blocking tax collection.

Legal Reasoning

Judge Barker explained that plaintiffs must typically pay taxes and then seek a refund to challenge tax laws. He dismissed arguments that this restriction didn't apply due to the agreement between both parties. “Relief enjoining the Johnson Amendment’s enforcement… would thus directly bear on the amount of tax that could be collected,” Barker wrote in his ruling.

Alternative Avenues for Challenge

The judge indicated that challenges to the Johnson Amendment could be pursued through other legal avenues, such as suing for a refund after taxes are paid or disputing the loss of tax-exempt status. However, he maintained that this case was not the appropriate venue.

Reaction to the Ruling

Americans United for Separation of Church and State, an advocacy group that intervened in the case, praised the judge’s decision. “We’re glad that the Johnson Amendment will remain a strong bulwark to stop religious extremists from exploiting houses of worship,” said Rachel Laser, the group’s president. She also noted the unfairness of exempting only religious organizations.

Investigations by The Texas Tribune and ProPublica revealed at least 20 instances of churches violating the Johnson Amendment over a two-year period, exceeding the number investigated by the IRS in the previous decade. The ruling maintains the status quo regarding the separation of church and state in political endorsements.