The Internal Revenue Service told a federal court that churches and other houses of worship may endorse political candidates to their congregations without jeopardising their tax-exempt status, marking the agency’s most significant retreat from the Johnson Amendment since the provision was enacted in 1954. The position is set out in a proposed consent decree filed on 7 July in National Religious Broadcasters et al. v. Long, a lawsuit in the U.S. District Court for the Eastern District of Texas brought by two Texas churches and a Christian broadcasters association. Under the agreement, statements delivered “through customary channels of communication” during religious services are deemed outside the scope of campaign intervention, meaning the IRS would not treat them as a violation of section 501(c)(3). Approval by Judge J. Campbell Barker is still required. While the agency has long been reluctant to enforce the Johnson Amendment against pastors, the filing is the first time it has formally said the restriction does not apply to in-service endorsements. The carve-out applies only to houses of worship; other charities and universities remain bound by the decades-old prohibition. Religious-freedom advocates applauded the move, but nonprofit watchdogs cautioned it could create a new conduit for undisclosed, tax-deductible campaign spending and erode church–state boundaries. “The decree could open the floodgates for political operatives to funnel money to their preferred candidates,” warned Diane Yentel, president of the National Council of Nonprofits. President Donald Trump, who has repeatedly called for dismantling the Johnson Amendment, welcomed the decision as a victory for faith leaders. The U.S. Conference of Catholic Bishops said it will continue its policy of neutrality despite the new latitude.