Evangelical leaders have hailed Donald Trump's religious liberty executive order as 'historic' and a 'giant step' to ending what some described as the US government's war on religion.

However at the same time as evangelical praised the White House, Freedom from Religion and other civil liberties groups launched lawsuits to challenge the order.

President Trump signed the order on Thursday which will allow churches to take a more active political roll without fear of loosing their tax-exempt status.

The order also commands regulatory relief is given to religious employers that object to contraception, such as Little Sisters of the Poor.

However it does not allow businesses to deny services to gay people in the name of religious freedom, as was predicted.

Samuel Rodriguez, president of the National Hispanic Christian Leadership Conference, who has previously criticised Trump's rhetoric against immigrants, praised the move as showing 'a new tone in Washington'.

Rodriguez was one of the religious leaders alongside Trump as he signed the order and said it ended a 'subversive oppression' against Christians in the US.

'For years now, people of faith—especially Christians—have been essentially told that their faith has no place beyond their front door,' he said.

'A subversive oppression has taken a hold of our nation and sincerely held beliefs are subject to not only social ridicule but also legal retribution. I strongly support the president's position and urge Congress to throw their support behind a full repeal. Our job is not yet done.'

Pastor Robert Jeffress went even further and said the order 'marks the beginning of the end of government's 60-year-old war against religious liberty'.

He said: 'Something is wrong. The president recognized that. And he vowed to do something to change it.'

He added: 'We're going to start protecting religious liberty instead of assaulting it. That's what was historic about today.'

Russell Moore, another prominent evangelical leader, said the order is 'more symbolic than substantive'.

He told CNN: 'The very fact that religious freedom is part of the conversation and religious freedom is being affirmed I think is a step in the right direction.'

'Now obviously if this is the end of the story, I'm really disappointed, but I think we ought to hold out the hope that this is just the beginning and that there are more steps to be made.'

The National Association of Evangelicals (NAE), which has previously opposed allowing churches to endorse political campaigns, welcomed the fact religious groups will not be forced to hand out contraception and the morning-after pill which violates their beliefs.

But the group of more than 100 influential evangelical leaders said it was just a first step and does not resolve the issue.

'Threats to religious freedom in America need to be addressed through legislative action that protects religious liberty for all Americans,' they said.

'We call on President Trump to work with members of Congress to pass legislation that strengthens the rights of all Americans and allows the organizations they form to operate in ways that are consistent with their beliefs.'

Surrounded by religious leaders, Trump said the move would mean the end to the 'crippling financial punishment' stopping churches endorsing candidates.

'We will not allow people of faith to be targeted, bullied or silenced anymore,' Trump proclaimed, to cheers from his audience in the White House's Rose Garden. 'And we will never, ever stand for religious discrimination. Never, ever.'

He said: 'No one should be censoring sermons or targeting pastors.'

He added: 'Now [you're] in a position to say what you want to say. I know you'll only say good.'

He went on: 'Freedom is not a gift from government, it's a gift from God.'

Trump's order directs the Internal Revenue Service to 'alleviate the burden of the Johnson Amendment', which bars organisations that enjoy tax-free status, such as churches, are prohibited from participating in a political campaign or supporting any one candidate for elective office.

This includes a ban on making financial contributions to campaigns and candidates, but the law does allow certain non-partisan political activity such as voter registration or get-out-the-vote drives.

To fully repeal the Amendment Trump would need to support of Congress, which he is unlikely to get. An executive order circumnavigates a difficult vote by simply order the revenue service not to enforce it.

But the Freedom from Religion Foundation, a secular charity, said they would challenge the order in court because it ushered in an era of church politicking while allowing restrictions to remain in place for secular, tax-exempt groups.

A lawsuit filed on Thursday in a Wisconsin district court claims Trump is violating equal protection rights and favouring church groups over secular groups, in violation US constitution's first amendment.

'Trump has directed the IRS to do something for which they both lack any enumerated or implied power: to selectively enforce a legitimate statute based solely on religion,' a statement from FFRF read.