In court filings July 7, the IRS has largely backed down on a decades-old rule that barred churches from engaging in political activity.

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.

The agency's agreement in a court filing formally reverses a decades-old provision of the tax code, but the motion would need to be approved by a judge.