The U.S. Internal Revenue Service has moved to exempt churches and other houses of worship from a 70-year-old prohibition on political campaigning, saying they may now endorse candidates without forfeiting their tax-exempt status. The policy shift is laid out in a July 7 filing in the U.S. District Court for the Eastern District of Texas that seeks to settle a suit brought by the National Religious Broadcasters and two Texas churches—First Baptist Church Waskom and Sand Springs Church. The proposed consent decree interprets the 1954 Johnson Amendment as not covering “communications from a house of worship to its congregation … concerning electoral politics viewed through the lens of religious faith.” Under the agreement, a pulpit endorsement delivered during normal worship services would be treated by the IRS as a “family discussion,” rather than participation in a political campaign. The settlement, which still requires approval from Judge J. Campbell Barker, would bar the agency from applying the Johnson Amendment against the plaintiff churches and signals a broader change in enforcement policy. Supporters, including prominent evangelical leaders and President Donald Trump, hailed the move as a victory for religious free speech. Critics such as the Council of Nonprofits warned it could "open the floodgates" for tax-deductible funds to flow into partisan politics, and legal scholars questioned whether favoring religious organizations over secular nonprofits can survive further court scrutiny. The U.S. Conference of Catholic Bishops said it will continue to refrain from candidate endorsements, highlighting divisions within faith communities. With most Americans opposed to pulpit endorsements, according to Pew Research, the IRS action represents the most significant retreat from the Johnson Amendment since its enactment and could reshape the intersection of religion, money and U.S. elections ahead of the 2026 midterms.