Utah Rep. Blake Moore is pushing for increased protections for religious groups to maintain their tax-exempt status even if the organization does not comply with public policy related to issues such as marriage, sexual conduct or gender identity.
Through the Fair Treatment of Religious Organizations Act filed by Moore last week, religious organizations would be guaranteed protections to enforce religious standards for their employees without losing eligibility for federal funding or contracts. The bill would specifically amend Section 501 of the Internal Revenue Code to block the IRS from considering a group’s beliefs or practices when making tax-related determinations.
“I’m immensely proud to represent one of the most religious and charitable states in the nation — and that overlap is no coincidence. Churches across our state and country contribute billions of dollars to the economy by providing health care, housing, and a wide range of social services. They also strengthen our communities by helping Americans find purpose and meaning,” Moore said in a statement. “The Fair Treatment of Religious Organizations Act builds on that foundation by establishing clear, enforceable standards that protect religious beliefs and practices and prevent the government from weaponizing tax-exempt status or federal funding eligibility against these organizations.”
The legislation would similarly prohibit federal agencies from discriminating against religious employers when considering grants, contracts, purchase orders, or other agreements based on the organization’s “religiously motivated employment decisions.” Those religious groups would also be shielded from discrimination if they make employment decisions that “require employees to comply with religious standards of conduct.”
Overall, the bill would ensure that an organization’s religious beliefs cannot be used against them even if those standards are inconsistent with public policy or with the sitting president’s executive orders.
Church of Jesus Christ, religious liberty groups support bill
The bill has the support of The Church of Jesus Christ of Latter-day Saints as well as top religious liberty groups such as the Christian Employers Alliance.
“The Church of Jesus Christ of Latter-day Saints appreciates the leadership on the Fair Treatment of Religious Organization Act,” the church said in a statement. “The bill addresses gaps in federal law and affirms the First Amendment’s requirement of equal treatment for religious and secular organizations. Faith-based organizations provide vital services nationwide and should not be penalized for sincerely held beliefs. We urge Congress to enact it.”
The legislation stems from concerns raised by religious groups after the Trump administration launched an IRS investigation into Harvard University in an attempt to strip the university of its tax-exempt status over allegations the school had fostered an environment of antisemitism. The White House argued Harvard should be required to adhere to the president’s executive order “Additional Measures to Combat Anti-Semitism,” using that as a legal basis to freeze $2.2 billion in federal grants and contracts.
A judge later ruled that freeze was unconstitutional.
Although that case was not related to religion, Moore argued it had “created concern in the faith-based community.” As a result, the Utah Republican sought to establish clear guardrails that future administrations cannot revoke the tax-exempt status of faith-based organizations over their compliance or noncompliance with executive orders “that pertain to marriage and sexuality.”
At least seven other Republican lawmakers have signed on as co-sponsors including Reps. Burgess Owens of Utah, David Schweikert of Arizona, Claudia Tenney of New York, Nathaniel Moran of Texas, Ben Cline of Virginia, Lance Gooden of Texas, and Russ Fulcher of Idaho.