H.R. 8117: Fair Treatment of Religious Organizations Act of 2026

This bill, known as the Fair Treatment of Religious Organizations Act of 2026, aims to ensure fair treatment for certain charitable organizations, particularly those with religious affiliations, in regard to tax-exempt status and federal financial assistance. The main provisions of the bill include:

Determination of Religious Purpose for Tax-Exempt Status

The bill proposes to amend Section 501 of the Internal Revenue Code. This amendment will allow organizations to determine their religious purpose without considering their beliefs or practices related to marriage, sexuality, or gender identity. Essentially, it creates a framework where:

• The determination of a religious purpose will overlook how an organization's beliefs might conflict with existing laws or public policies.
• A belief will still be classified as a religious belief even if it is not central to an organized religion or not compelled by religious doctrine.

This change is intended to apply to taxable years starting after December 31, 2025.

Nondiscrimination in Federal Financial Assistance

The bill states that no federal government branch, department, or agency can discriminate against religious organizations applying for or receiving federal financial assistance, including grants and loans. Key points of this provision include:

• Religious employers can make employment decisions based on shared religious beliefs and compliance with their religious standards.
• This aligns with existing exemptions and defenses under various civil rights laws, including the Civil Rights Act of 1964 and the Americans with Disabilities Act.

Essentially, the bill protects religious organizations from being disadvantaged in their employment practices when they apply for federal funding, ensuring their right to uphold their religious standards.

Overall Aim

The overall goal of the bill is to support religious organizations by clarifying their tax status and protecting them from discrimination in federal financial matters. By adding these provisions, the bill seeks to create a clearer understanding and definition of religious purpose in legal and federal contexts.

Relevant Companies

None found.