The House Ways and Means Committee has dropped a provision (Section 692) that would have allowed religious organizations to violate the tax code's ban on partisan election activity up to three times a year without losing their tax-exempt status. At a June 14 review of HR 4520 Rep. Nancy Johnson (R-CT) offered an amendment stripping Section 692 from the bill. She was supported by Reps. Amo Houghton (R-NY), John Lewis (D-GA), Charles Rangel (D-NY) and others. Her amendment was approved on a voice vote. Last minute technical changes to Section 692 failed to correct the fundamental problems with the proposal. Advocates of legislation (HR 235) proposed by Rep. Walter Jones (R-NC) that would legalize partisan activity for religious organizations objected to Section 692 because it did not go far enough. Opponents, including OMB Watch, objected to unequal treatment of religious and non-religious 501(c)(3) organizations, creation of a new soft money loophole and politicization of houses of worship. HR 235 is pending before the House Ways and Means Committee. THANKS to all of you that responded to our action alert on this issue. The public opposition to this proposal was forceful enough to stop it. Read this week's OMB Watcher article, Politics-and-Religion Issue Surfaces in Congress, Campaign, for more information.