Trump welcomes IRS decision to let churches endorse political candidates

WASHINGTON (Reuters) -U.S. President Donald Trump on Wednesday welcomed the Internal Revenue Service's decision that houses of worship could endorse political candidates to their congregations without risking losing their status as tax-exempt nonprofits.

"I love the fact that churches could endorse a political candidate," Trump told reporters at the White House. "If somebody of faith wants to endorse, I think it's something that I'd like to hear."

In a court filing on Monday to resolve a lawsuit by two Texas churches and the National Religious Broadcasters, the IRS said traditional religious communications are exempt from a decades-old provision in the U.S. tax code that bars nonprofits - religious and secular - from endorsing political candidates.

The Justice Department under Democratic President Joe Biden had defended the law's constitutionality in court, saying Congress was entitled to refuse to subsidize political activity through tax benefits.

Trump has criticized the law. During his first term in office in 2017, Trump signed an executive order aimed at easing the ban on political activity by churches.

"Those people were not allowed to speak up. Now they're allowed to speak up," Trump said. "I think it's terrific."

(Reporting by Doina Chiacu; Editing by Chizu Nomiyama)