Free Speech Fairness Act
- Sponsor
- Rep. Harris, Mark [R-NC-8]
- Committees
- Ways and Means Committee (primary)
- Last action
- Mar 31, 2025
Bottom line
The bill seeks to relax restrictions on political speech for 501(c)(3) organizations, potentially allowing them to engage in limited political campaign statements without losing their tax-exempt status.
What it actually does
This bill amends Section 501 of the Internal Revenue Code of 1986 to allow 501(c)(3) charitable organizations to make statements related to political campaigns without jeopardizing their tax-exempt status. This allowance applies if the statements are made in the ordinary course of carrying out the organization's exempt purpose and result in no more than de minimis incremental expenses. Essentially, it creates exceptions to the long-standing prohibition on political campaign intervention by tax-exempt charities.
Proponents argue
Proponents argue that the current law, known as the Johnson Amendment, unconstitutionally restricts the free speech and religious liberty of charitable organizations, particularly churches. They contend that this bill clarifies ambiguous rules, allowing these organizations to speak on moral and political issues relevant to their mission without fear of IRS reprisal, thereby restoring their First Amendment rights.
Opponents contend
Opponents contend that this bill would undermine the integrity of the charitable sector by blurring the lines between tax-exempt charitable activity and partisan politics. They argue it could open the door for dark money to flow into political campaigns through tax-deductible donations, allowing charities to become partisan tools and eroding public trust in non-profit organizations.
The bill text is very short and can be read quickly, but its implications for tax law and political activity are complex and require careful consideration.
Section 2(a)
Allowing 501(c)(3) Organizations to Make Political Campaign Statements
This provision amends Section 501 of the Internal Revenue Code to add a new subsection (s). This new rule specifies that a 501(c)(3) organization will not lose its tax-exempt status or be deemed to have intervened in a political campaign solely because of the content of a statement. This exception applies if the statement is made in the ordinary course of the organization's regular activities to fulfill its exempt purpose, and if it incurs only de minimis incremental expenses.
Supporters argue
Supporters argue this provision enhances the free speech rights of charitable and religious organizations, which they believe are currently stifled by vague IRS regulations. They assert it allows these groups to participate more fully in public debate on issues relevant to their missions without fear of punitive action from the government.
Critics contend
Critics contend that this provision would erode the long-standing separation between tax-exempt charitable activities and partisan politics. They argue it could allow tax-deductible donations to indirectly fund political campaign activities, giving an unfair advantage to certain candidates or parties and potentially politicizing the charitable sector.
Tradeoffs
This provision navigates the tension between protecting the free speech rights of non-profit organizations and maintaining the integrity of the tax-exempt sector by preventing tax-subsidized partisan political activity. It seeks to define a narrow pathway for political statements while avoiding outright repeal of the prohibition.