Texas Federal Court Rejects IRS Consent Decree on Church Political Endorsements

A federal judge in the Eastern District of Texas rejected the proposed consent agreement between the IRS and National Religious Broadcasters on March 31, 2026, ruling that the court lacked authority to approve an agreement that would effectively nullify a federal statute enacted by Congress. The ruling blocked the consent decree from taking effect but did not resolve the underlying lawsuit or the IRS's stated non-enforcement posture. The IRS administrative policy of not revoking 501(c)(3) status for church political endorsements remained unchanged despite the court's rejection.