Fair Treatment of Religious Organizations Act of 2026

This legislation amends the Internal Revenue Code to ensure that an organization's religious beliefs or practices concerning marriage, sexuality, or gender identity do not affect its tax-exempt status, even if those beliefs are inconsistent with public policy. It clarifies that a belief qualifies as religious for these purposes regardless of whether it is central to a system of religion. The bill further prohibits federal agencies from discriminating against religious employers that receive Federal financial assistance . Specifically, federal entities cannot disadvantage religious corporations, associations, or educational institutions for employment actions consistent with their right to hire individuals who share their religious beliefs and comply with their religious standards. This protection aligns with existing exemptions and defenses found in laws such as the Civil Rights Act of 1964 and the Religious Freedom Restoration Act, aiming to safeguard religious organizations' operational autonomy when engaging with federal programs.