Fair Treatment of Religious Organizations Act of 2026

Bill Number

H.R. 8117

Origin Chamber

House

Congress

119th Congress, Session 2

Policy Area

Civil Rights and Liberties, Minority Issues

Status

Introduced

Latest Action

2026-03-26: Referred to the Committee on Ways and Means, and in addition to the Committee on Oversight and Government Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

Last Updated

2026-06-12T13:43:13Z

AI-Generated Summary

Purpose

The Fair Treatment of Religious Organizations Act of 2026 aims to protect religious organizations from discrimination in obtaining tax-exempt status and federal financial assistance based on their beliefs about marriage, sexuality, or gender identity, and to safeguard their employment practices aligned with those beliefs.

Key Provisions

• Tax-Exempt Status Determination (Section 2):
• Amends Section 501 of the Internal Revenue Code to add a new subsection (s).
• When deciding if an organization's purpose is "religious" for tax exemption, the IRS must ignore the organization's beliefs or practices on marriage, sexuality, or gender identity, even if they conflict with other laws or public policy.
• A belief qualifies as religious even if it is not central to or required by a formal religion.
• Applies to tax years beginning after December 31, 2025.

• Nondiscriminatory Federal Financial Assistance (Section 3):
• Prohibits any federal branch, department, or agency from discriminating against or disadvantaging religious employers (e.g., corporations, associations, schools, or societies) that seek or receive federal grants, loans, contracts, purchase orders, or cooperative agreements.
• Protection applies to employment actions consistent with the employer's religious beliefs and standards, including exemptions under:
• Civil Rights Act of 1964 (e.g., allowing religious orgs to hire based on shared faith).
• Americans with Disabilities Act (qualification standards).
• Religious Freedom Restoration Act (RFRA) of 1993.
• First Amendment (free exercise of religion).

Significant Changes to Existing Law

• New IRS Rule: Introduces specific criteria for evaluating "religious purpose" under tax code Section 501, explicitly shielding beliefs on sensitive social issues from impacting tax-exempt eligibility—a protection not previously codified this way.
• Federal Funding Protection: Creates a blanket federal prohibition on discrimination in financial assistance awards based on religious employment practices, expanding on existing exemptions by making them explicitly non-disqualifying for funding.

Potential Impacts

• Government Agencies: IRS must adjust tax-exempt reviews; funding agencies (e.g., HHS, Education) cannot deny aid due to religious hiring or beliefs, potentially increasing awards to qualifying religious groups.
• Citizens and Organizations: Religious nonprofits gain stronger security for tax benefits and funding; employees or applicants may face limits on challenging faith-based hiring.
• No Direct International Impact: Focuses on domestic U.S. tax and funding policies.

Main Stakeholders

• Religious Organizations: Charities, schools, associations with faith-based views on marriage, sexuality, gender identity, or hiring (primary beneficiaries).
• Federal Government: IRS (tax exemptions), agencies awarding grants/loans (e.g., compliance burdens).
• Employees/Applicants: Those seeking jobs at religious employers (potentially affected by faith-aligned hiring).
• Taxpayers: Indirectly, via preserved tax exemptions and funding allocations.

Notable Legal, Constitutional, or Political Implications

• Religious Freedom: Bolsters First Amendment and RFRA protections by codifying deference to religious beliefs, even if controversial.
• Anti-Discrimination Tension: May limit enforcement of broader civil rights laws (e.g., Title VII) against religious employers in federal funding contexts.
• Constitutional: Reinforces "ministerial exception" precedents; could face challenges under Equal Protection or Establishment Clause if seen as favoring religion.
• Political: Introduced by bipartisan sponsors; referred to Ways and Means and Oversight committees, signaling focus on religious liberty vs. nondiscrimination debates.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Moore, Blake D. [R-UT-1]

Cosponsors (13)

Rep. Cline, Ben [R-VA-6], Rep. Fulcher, Russ [R-ID-1], Rep. Gooden, Lance [R-TX-5], Rep. Tenney, Claudia [R-NY-24], Rep. Owens, Burgess [R-UT-4], Rep. Moran, Nathaniel [R-TX-1], Rep. Schweikert, David [R-AZ-1], Rep. Mann, Tracey [R-KS-1], Rep. Steube, W. Gregory [R-FL-17], Rep. Grothman, Glenn [R-WI-6], Rep. Walberg, Tim [R-MI-5], Rep. Alford, Mark [R-MO-4], Rep. Maloy, Celeste [R-UT-2]

Recent Actions

• 2026-03-26: Referred to the Committee on Ways and Means, and in addition to the Committee on Oversight and Government Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2026-03-26: Referred to the Committee on Ways and Means, and in addition to the Committee on Oversight and Government Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2026-03-26: Introduced in House
• 2026-03-26: Introduced in House

Bill Versions

• Fair Treatment of Religious Organizations Act of 2026 — issued 2026-03-26 — PDF (3 pages)