US judge rejects IRS pact allowing churches to endorse political candidates - Reuters

A U.S. judge has rejected an agreement between the IRS and churches that would have allowed religious organizations to endorse political candidates without losing their tax-exempt status. The ruling overturns a settlement that would have effectively suspended the longstanding Johnson Amendment, a 1954 federal law that prohibits tax-exempt organizations, including churches, from engaging in campaign activity or endorsing candidates. The decision preserves the legal framework restricting political speech by tax-exempt entities, though the case reflects ongoing tension between free speech advocates and those who argue tax-exempt status should come with restrictions on political activity. Churches have long chafed under the Johnson Amendment restriction, and the issue has become a flashpoint in debates over religious liberty and tax policy.