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Supreme Court Rules That Excluding

Religious Schools from Aid Program Violates

Constitution: Implications for Congress



July 2, 2020
Based on concerns about impermissibly supporting religion, many state constitutions bar state
governments from providing funds to churches and other types of religious institutions -even in
circumstances where that support would not violate the Establishment Clause of the First Amendment to
the U.S. Constitution. However, in recent years, sorne have questioned whether these state provisions are
unconstitutional under Supreme Court precedent that has interpreted the First Amendment's Free Exercise
Clause to prevent governments from discriminating against religious organizations when they distribute
public benefits. In Espinoza v. Mo Unana Department of Revenue, issued June 30, 2020, the Supreme Court
weighed in on this question, ruling that Montana's state constitution could not be applied to bar religious
schools from participating in a tax credit program benefiting parents of private school students. This
Legal Sidebar discusses the legal principles that governed this dispute, explains the Court's Espinoza
opinion, and explores implications of the decision for Congress. In particular, Espinoza could call into
question any federal laws that exclude religious entities from receiving federal aid based solely on their
religious character.

Legal Background
The First -Amendment's Religion Clauses prohibit the government from making a law respecting an
establishment of religion, or prohibiting thefree exercise thereof. In the words of the Supreme Court, the
Establishment Clause forbids sponsorship, financial support, and active involvement of the sovereign in
religious activity. But the Supreme Court has also upheld certain government programs that support
religious institutions, particularly if they provide general, secular benefits to a broad class of beneficiaries.
The Court has also approved of indirect aid programs like some schoolvoucher programs, where the
government broadly offers assistance to individuals who may then independently choose to use those
benefits at religious institutions.
In Locke vi. Davey, decided in 2004, the Supreme Court recognized that in at least some circumstances,
governments may choose not to fund certain types of religious activities even if government support
would not violate the Establishment Clause -that is, even if the exclusion is not required by the
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