Fair Treatment of Religious Organizations Act of 2026

This Act may be cited as the Fair Treatment of Religious Organizations Act of 2026.

Section 501 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:

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.

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.

.

The amendment made by this section shall apply to taxable years beginning after December 31, 2025.

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.