Bill Summary
The "Fair Treatment of Religious Organizations Act of 2026" aims to ensure equitable treatment for certain charitable organizations, particularly those with religious affiliations, in relation to federal financial assistance and tax-exempt status.
Key provisions of the bill include:
1. **Tax-Exempt Status**: The legislation amends the Internal Revenue Code to establish that the determination of whether an organization's purpose is religious should not consider its beliefs or practices regarding marriage, sexuality, or gender identity, even if those beliefs conflict with existing laws or public policy. It clarifies that beliefs should not be deemed non-religious merely because they are not central to a formal religion.
2. **Nondiscrimination in Federal Assistance**: The bill prohibits federal government agencies from discriminating against religious organizations—such as religious corporations, associations, educational institutions, or societies—in their employment practices when these organizations apply for or receive federal financial aid. This includes the right to hire individuals who share their religious beliefs and adhere to their religious standards.
Overall, the legislation seeks to reinforce the rights of religious organizations in relation to federal programs and support, promoting their ability to operate in accordance with their beliefs without facing discrimination.
Possible Impacts
The "Fair Treatment of Religious Organizations Act of 2026" could affect people in various ways. Here are three examples:
1. **Tax-Exempt Status for Diverse Religious Beliefs**: The amendment to Section 501 of the Internal Revenue Code allows organizations to qualify for tax-exempt status based on religious purposes without considering their beliefs or practices regarding marriage, sexuality, or gender identity. This could enable a wider range of religious organizations, including those with non-traditional or minority beliefs, to receive tax benefits. Individuals affiliated with these organizations may find increased financial support for community services and initiatives.
2. **Employment Practices in Religious Organizations**: With the provision that federal financial assistance cannot discriminate against religious employers for hiring practices consistent with their beliefs, religious organizations may have more freedom to hire individuals who share their religious convictions. This could lead to a workforce that is more aligned with the organization's values, but it might also raise concerns about potential discrimination against qualified candidates who do not share those beliefs, affecting job seekers from diverse backgrounds.
3. **Impact on Recipients of Federal Financial Assistance**: Individuals or groups receiving assistance from religious organizations may experience changes in the services provided to them. For example, if a religious organization receiving federal funds is allowed to prioritize its beliefs in its operations, this could influence the types of programs available (e.g., social services, education). Recipients who do not conform to the organization's religious standards may feel unwelcome or excluded from certain services, leading to potential disparities in access to support.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8117 Introduced in House (IH)]
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119th CONGRESS
2d Session
H. R. 8117
To ensure fair treatment of certain charitable organizations and
recipients of Federal financial assistance, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 26, 2026
Mr. Moore of Utah (for himself, Mr. Cline, Mr. Fulcher, Mr. Gooden, Ms.
Tenney, Mr. Owens, Mr. Moran, and Mr. Schweikert) introduced the
following bill; which was 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
_______________________________________________________________________
A BILL
To ensure fair treatment of certain charitable organizations and
recipients of Federal financial assistance, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Fair Treatment of Religious
Organizations Act of 2026''.
SEC. 2. DETERMINATION OF RELIGIOUS PURPOSE FOR PURPOSES OF TAX-EXEMPT
STATUS.
(1) In general.--Section 501 of the Internal Revenue Code
of 1986 is amended by adding at the end the following new
subsection:
``(s) Determination of Religious Purpose.--
``(1) In general.--For purposes of this section, any
determination of whether a purpose is a religious purpose shall
be made without regard to the organization's religious beliefs
or practices concerning marriage, sexuality, or gender
identity, and without regard to whether such beliefs or
practices are otherwise inconsistent with law or public policy.
``(2) Interpretation of religious belief.--A belief shall
not fail to be treated as a religious belief for purposes of
paragraph (1) merely because such belief is not compelled by or
central to a system of religion.''.
(2) Effective date.--The amendment made by this section
shall apply to taxable years beginning after December 31, 2025.
SEC. 3. NONDISCRIMINATORY FEDERAL FINANCIAL ASSISTANCE.
No branch, department, or agency of the Federal Government shall,
with respect to any employer that is a religious corporation, religious
association, religious educational institution, or religious society
that applies for or receives Federal grants, loans, or other financial
assistance under a contract or subcontract, grant, purchase order, or
cooperative agreement with the Federal Government, discriminate against
or disadvantage such employer for employment actions or practices
consistent with the right to employ persons who share the religious
beliefs and comply with the religious standards of the employer,
including the exemptions and defenses described in sections 702(a) and
703(e)(2) of the Civil Rights Act of 1964 (42 U.S.C. 2000e-1(a) and 42
U.S.C. 2000e-2(e)(2)), section 103(d) of the Americans with
Disabilities Act of 1990 (42 U.S.C. 12113(d)), the Religious Freedom
Restoration Act of 1993 (42 U.S.C. 2000bb et seq.), and the First
Amendment to the Constitution of the United States.
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