What is the Johnson Amendment and Why Has it Sparked a Religious Lawsuit?

Various religious organizations depend on their tax-exempt status, and many Churches in the United States would not be able to function without this financial advantage. However, this advantage comes at a cost – and tax-exempt organizations must surrender certain rights. One of the most notable downsides of tax-exempt status is outlined by the “Johnson Amendment” under § 501(c)(3) of the IRC. What exactly is the Johnson Amendment, and why has it sparked a religious lawsuit in the United States?

The Johnson Amendment Explained

In 1954, Lyndon B. Johnson introduced the Johnson Amendment – a provision of the U.S. tax code that still bears his name. At this point in time, LBJ was not yet president – and he was still operating as a Texas Senator. At the time, the provision was not controversial – and it was passed with no debate whatsoever. 

The Johnson Amendment simply states that in order to maintain its tax-exempt status, a religious organization must refrain from making public political statements on behalf of any candidate for public office. This includes anything under the general category of “publishing” or “distributing” political statements. Even if a religious organization does not endorse a particular candidate, it may lose its tax-exempt status simply for criticizing a political candidate. 

Religious Broadcasters File Complaint Against the Internal Revenue Service

In late August of 2024, two religious organizations filed a complaint against the Internal Revenue Service – accusing them of “selectively” enforcing the amendment. Their core argument is that the Johnson Amendment is unconstitutional – as it violates the First Amendment. 

The lawsuit also states that many nonprofit organizations make political statements with no consequences. This implies that the IRS enforces the amendment in an a biased manner. According to the plaintiffs, you can lose your tax-exempt status for making certain political statements – but not others. The lawsuit points out that some progressive faith-based groups and churches openly endorse candidates – but the IRS does nothing:

“The IRS operates in a manner that disfavors conservative organizations and conservative, religious organizations in its enforcement of § 501(c)(3). This is a denial of both religious freedom and equal protection.”

Could the Johnson Amendment Be Repealed?

If the Johnson Amendment is indeed being enforced in an arbitrary, unfair manner, this could hasten its repeal. Many have tried to repeal it over the years, perhaps most notably Donald Trump during his first term as president. Although Trump never actually repealed the amendment, he paused all enforcement activities during his time in office. Depending on the outcome of the next election, these repeal efforts could be more successful within the next few years. 

That being said, there are notable concerns about repealing the Johnson Amendment. Some say that it could create a loophole for tax-deductible political contributions with minimal reporting requirements. There is also an important concern about the separation of church and state. Ultimately, most people would agree that if the Johnson Amendment remains, it should at least be enforced fairly. 

The Goal of the Universal Life Church’s Blog

Each week, the Universal Life Church’s blog focuses on documenting the most noteworthy cases involving the required separation between church and state. Despite required Constitutional separation, many fear that the Supreme Court’s current majority could erode these constitutional safeguards. Our blog focuses on describing matters in a way that objectively examines both sides and which can be easily understood by readers.