Supreme Court Watch: Public Funds and Religion

John Christie • March 17, 2020

Three years ago, the Supreme Court considered the question of whether the First Amendment allows a state to deny public benefits to a religious organization in Trinity Lutheran Church v Comer. Trinity Lutheran operated a pre-school and day care center on the church’s grounds in Boone County, Mo. The church applied for a grant from a state program that used old tires destined for landfills by turning them into a safer pour-in-place surface for playgrounds. Eligible non-profit organizations that purchased these playground surfaces could receive a reimbursement grant from the state. However, the Trinity Lutheran was deemed ineligible for the grant from the state based upon a clause in the Missouri Constitution that said that “No money shall ever be taken from the public treasury, directly or indirectly, in aid of any church . . ..”

In an opinion written by Chief Justice John Roberts, a seven-justice majority held that the free exercise clause of the First Amendment protects religious observers against unequal treatment in the disbursement of public funds. “The exclusion of Trinity Lutheran from a public benefit for which it is otherwise qualified, solely because it is a church, is odious to our Constitution, and cannot stand.” Justice Sotomayor, joined by Justice Ginsberg, dissented, asserting that using public funds to pay for improvements to the facilities a church uses to practice and spread its religious views would cross the line drawn by the establishment clause of the First Amendment.

However, although some of the language in the majority opinion would appear to have established a broad principle, the opinion expressly limited the holding in the case to discrimination based upon religious identity with respect to playground resurfacing. “We do not address religious uses of funding or other forms of discrimination,” said the Chief Justice. In a separate concurring opinion, Justice Gorsuch, joined by Justice Thomas, refused to join in the majority’s qualification because it suggested that only “playground resurfacing” cases, or only cases involving some association with children’s safety or health, were governed by the Court’s opinion. In his own separate concurring opinion, Justice Breyer cautioned that public benefits come “in many shapes and sizes” and declined to say whether “other kinds of public benefits” might be subject to the same anti-discrimination principle.
 
In the present term in a closely-watched case pending, the Court has another opportunity to consider the underlying issue in a different context in Espinoza v. Montana Department of Revenue. In 2015, the Montana legislature established a program providing a dollar-for-dollar tax credit of up to $150 for individuals and businesses who donate to certain private scholarship organizations. Those scholarship organizations then used the donated money to provide scholarships for students who wanted to attend private schools — which, in Montana, are overwhelmingly religious. Shortly after the program was enacted, however, the Montana Department of Revenue announced that families could not use the scholarships at religious schools because Montana, like Missouri, has a “no-aid clause” in its constitution, prohibiting aid to “sectarian schools.”

Parents of students attending one of those private schools challenged the Department’s ruling in court, claiming that it unconstitutionally discriminated against them by excluding religious schools from the tax-credit program. Recognizing the clear conflict with the state’s “no-aid” provision, the Montana Supreme Court struck down the entire program, abolishing public tax-credit funding for all private schools in the state, whether religious or not.

The case was argued before the U.S. Supreme Court on January 22.  Several Justices appeared to have concluded that Trinity Lutheran broadly applied to prevent the state from withholding funds from religious schools even when used for a religious education purpose. Other justices distinguished Trinity Lutheran as having involved a “completely secular benefit” and raised the question of whether there was in fact any religious discrimination here at all, inasmuch as the Montana Supreme Court had ended all state funding of private schools whether religious or not. At least two Justices expressed concern about the broader implications of a ruling for the parents — specifically, whether it might negatively affect government funding for public schools.

As is often the case, by the end of the oral argument the result was difficult to predict. But because public funding of religious education is on the face of it far different than public funding of playground surfacing, the broad consensus achieved in Trinity Lutheran will not be likely in this case. The impact of the ultimate result may be much more significant. A decision is expected by the end of June.


John Christie was for many years a senior partner in a large Washington, D.C. law firm. He specialized in anti-trust litigation and developed a keen interest in the U.S. Supreme Court about which he lectures and writes.

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