Fifth Circuit Reviewed Johnson Amendment Challenge

The appellate court is weighing a legal challenge to tax-exempt rules prohibiting political endorsements by nonprofits.

Updated on Oct. 6, 2026 in Law

Bold flat-color editorial illustration of a stone column base against a solid background, symbolizing judicial review and structural policy. — The Fifth Circuit Court of Appeals has begun reviewing a challenge to the Johnson Amendment, which restricts political endorsements by tax-exempt organizations. AI Illustration. Upload story photo >

Live Poll

Should tax-exempt religious organizations be permitted to endorse political candidates?

The Fifth Circuit Court of Appeals has begun reviewing a challenge to the Johnson Amendment, a policy that bars tax-exempt nonprofits from endorsing or opposing political candidates. The case follows a Texas federal judge's dismissal of a proposed settlement between religious groups and the IRS.

Why it matters

The case carries significant implications for the intersection of religious freedom and tax law, as opponents argue the amendment silences biblical teaching on social issues. The lower court judge previously determined the court lacked the authority to approve a settlement that would alter tax enforcement.

The legal challenge involves an attempt to strike down the Johnson Amendment, which forbids tax-exempt entities from participating in candidate politics. A federal judge dismissed the case in March 2026, ruling that the court lacked authority to approve a settlement.

The players

Fifth Circuit Court of Appeals

This is one of the thirteen United States courts of appeals that holds jurisdiction over federal appeals in Texas, Louisiana, and Mississippi.

Dr. Ben Carson

He is a public figure and former U.S. Secretary of Housing and Urban Development who has publicly criticized the Johnson Amendment.

National Religious Broadcasters

This is a nonpartisan, international association of Christian communicators and religious media organizations.

Intercessors for America

This is an organization that mobilizes Christians to pray and take action on national issues.

The details

Plaintiffs, including the National Religious Broadcasters and Intercessors for America, contend that the policy restricts their ability to provide biblical guidance on issues that influence voter choices. The Department of Justice has requested a reversal of the lower court's decision, which initially rejected a proposed settlement between the groups and the IRS.

In 2025, religious groups and the IRS proposed a settlement.
In March 2026, a federal judge rejected the settlement and dismissed the case.
In June 2026, Dr. Ben Carson voiced his opposition to the amendment.
In October 2026, the Fifth Circuit Court of Appeals reviewed the challenge.

Political Context

Opponents of this legal challenge argue that the Johnson Amendment remains a vital safeguard for maintaining the separation of church and state in political campaigns. They contend that allowing tax-exempt religious entities to endorse candidates would invite significant political influence into the nonprofit sector.

A successful challenge could eventually permit nonprofit organizations and churches to openly endorse political candidates without risking their tax-exempt status. For the average taxpayer, this change could fundamentally alter the landscape of political funding and religious involvement in national elections.

The takeaway

The ongoing court proceedings highlight a long-standing tension between federal tax regulations and the desire of religious organizations to advocate for their beliefs. Observers should track the appellate decision to see if it sets a precedent for how nonprofits engage with electoral politics.