What does Romans 4:5 mean?
ESV: And to the one who does not work but believes in him who justifies the ungodly, his faith is counted as righteousness,
NIV: However, to the one who does not work but trusts God who justifies the ungodly, their faith is credited as righteousness.
NASB: But to the one who does not work, but believes in Him who justifies the ungodly, his faith is credited as righteousness,
CSB: But to the one who does not work, but believes on him who justifies the ungodly, his faith is credited for righteousness.
NLT: But people are counted as righteous, not because of their work, but because of their faith in God who forgives sinners.
KJV: But to him that worketh not, but believeth on him that justifieth the ungodly, his faith is counted for righteousness.
NKJV: But to him who does not work but believes on Him who justifies the ungodly, his faith is accounted for righteousness,
Verse Commentary:
Paul is showing the difference between being made right with God by works, as opposed to by faith. If we could be justified before God by works, Paul wrote in the previous verse, then God would owe us righteousness. It would be like our paycheck for services rendered: a transaction with the God of heaven. Paul has already demonstrated in Romans, however, that nobody can accomplish this work. Instead, we all sin and fall short of God's glory (Romans 3:23).

Now Paul points to the opposite of earning something by work: receiving it as a gift. The difference comes in not laboring with a mind to "earn" or purchase that benefit. The one who receives a gift, as a gift, does not try to earn it. What would be the point? Instead, this person simply believes in the God who justifies the ungodly. His faith is what causes him to be declared righteous by God.

Paul has just given a new descriptor to God: "the one who justifies the ungodly." This is the entire point of the gospel of Jesus Christ. God does not wait for us to become godly, or righteous on our own apart from Him, before welcoming us into His family. Because of our faith in righteous Jesus, God justifies us in spite of our sinfulness. There is no greater gift than this.

Paul's point to his opponents, the Jewish religious leaders, is that this is from the teachings of Scripture itself and not something he has invented.
Verse Context:
Romans 4:1–12 focuses on the faith of Abraham, referenced by Paul to further his case about faith. God only declares people righteous based on their faith in Him. David, as well, describes those against whom God will not count their sin as ''blessed.'' Paul insists that this blessing of being declared righteous by God is available to both the circumcised and the uncircumcised. After all, God declared Abraham righteous long before he was circumcised. In that way, he became the spiritual father of both the believing Gentiles and the believing Jews.
Chapter Summary:
Romans 4 is all about the faith of Abraham. God declared Abraham righteous because of his faith, not because of his works. A declaration of righteousness was God's gift, not a payment. This righteousness is available to everyone, circumcised or not. God declared Abraham righteous many years before he was circumcised, making him the spiritual father of all who believe, whether circumcised or not, whether Jew or Gentile. God's promises to Abraham and his offspring can't be received by keeping the law, only by faith. Abraham's faith in God's promise of a son with Sarah did not waver even as he grew older. God will declare us righteous, as well, if by faith we believe in the God who delivered Jesus to die for our sins and raised Him back to life for our justification.
Chapter Context:
So far, this letter has established that every single person is guilty of sin and does not deserve God's forgiveness. Whether we know God's law explicitly, or not, we still fail to obey. Only faith in Christ can rescue us from the penalty we deserve for that sin. Romans 4 explores the example of Abraham, and God's amazing gift of declaring Abraham righteous solely on the basis of his faith. This declaration was given many years before Abraham was circumcised, causing Abraham to become the father of all who believe God by faith. Abraham's continued faith in God is a model for us. Romans will continue by exploring how Christ brings us peace with God.
Book Summary:
The book of Romans is the New Testament's longest, most structured, and most detailed description of Christian theology. Paul lays out the core of the gospel message: salvation by grace alone through faith alone. His intent is to explain the good news of Jesus Christ in accurate and clear terms. As part of this effort, Paul addresses the conflicts between law and grace, between Jews and Gentiles, and between sin and righteousness. As is common in his writing, Paul closes out his letter with a series of practical applications.
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