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Court Rules Religious Schools Receiving Public Funds Must Follow State Laws

Federal Court Upholds Anti-Discrimination Laws for Private Religious Schools

Last week, a federal appeals court in Boston ruled that private religious schools receiving public funds must adhere to state non-discrimination laws. This ruling mandates that these schools cannot discriminate based on gender identity, sexual orientation, or religion, aligning them with broader state educational requirements.

The U.S. Court of Appeals for the First Circuit’s decision addressed cases involving two Maine schools, Saint Dominic Academy in Auburn and Bangor Christian Schools, operated by Crosspoint Church. These schools sought exemptions from the Maine Human Rights Act, aiming to avoid policies conflicting with their religious beliefs, such as admitting openly gay or transgender students or using students’ preferred pronouns.

The appeals court largely supported a previous lower court ruling that denied these exemptions. However, it requested the lower court to reassess how state rules regarding religious expression apply to religious schools.

Maine has a unique system that allows students from towns without public schools at their grade level to attend approved private schools with state funding. Historically, religious schools were excluded from this program until a 2022 U.S. Supreme Court ruling found such exclusions violated the First Amendment.

In response to ongoing litigation, the Maine Legislature amended the Maine Human Rights Act to clearly prohibit discrimination based on gender identity and religion in educational settings. The amendment also specified that the exemption for religious schools to discriminate based on sexual orientation only applied to those not receiving public funds.

Saint Dominic Academy, a Catholic institution, and Crosspoint Church, an evangelical entity, argued in federal court that these amendments targeted religious schools, describing them as a “poison pill” designed to prevent religious schools from accessing public funds.

Crosspoint contended that compliance with the Maine Human Rights Act would force Bangor Christian Schools to accept students whose beliefs conflicted with the school’s religious doctrines, potentially leading to expulsions if policies were not followed.

Similarly, Saint Dominic Academy argued that Maine’s laws would compel the school to support a student’s gender transition against parental wishes and discipline those refusing to use preferred pronouns, conflicting with its religious mission.

In 2024, a U.S. District Court judge ruled against the schools, finding no constitutional violations in the state’s application of its anti-discrimination laws. The appeals court’s recent decision mostly upheld this ruling, stating that religious schools receiving public funding cannot discriminate based on gender identity or sexual orientation and cannot prefer students of a specific faith during admissions.

“Just as combatting religious discrimination qualifies as a legitimate governmental pursuit, so too combatting sexual-orientation and gender-identity discrimination rises to that level,” the court found.

The schools also challenged the Maine Human Rights Act’s employment practice provisions, but judges noted existing legal exemptions allow religious schools to employ individuals conforming to their religious tenets, including beliefs on sexual orientation and gender identity.

The court sent one issue back to the lower court, suggesting that religious schools could contest a provision requiring equal space for different religious practices. The court illustrated a hypothetical scenario where a Christian school might have to accommodate students reciting a Hindu mantra during Christian prayers.

Adèle Keim, representing Saint Dominic Academy, argued the court’s findings on employment practices and religious expression were favorable but criticized the decision, stating it was “ridiculous” to suggest a Catholic school couldn’t prioritize parish members in admissions.

Jeremy Dys, representing Crosspoint Church, expressed concerns over the First Circuit’s opinions, suggesting they limit the ability of Christian schools to require conduct aligning with their beliefs. Dys mentioned the possibility of appealing to the Supreme Court.

The Maine Attorney General’s Office, representing the state, declined to comment. However, the American Civil Liberties Union of Maine praised the court’s decision, emphasizing that all state-funded schools should follow the same rules.

The U.S. Supreme Court is expected to hear a related case involving Colorado preschools and equal opportunity requirements. This case could significantly impact the Maine cases, as noted by Alex Luchenitser from Americans United for Separation of Church and State.

Recent Supreme Court decisions have often favored religious interests in educational contexts. This includes a ruling supporting parents in California opposing laws that restrict schools from informing parents about their children’s gender transitions without consent. Another case, Mahmoud v. Taylor, ruled parents could opt out of instruction violating their religious beliefs.

Luchenitser warned that Supreme Court trends might lead to taxpayer money supporting institutions that discriminate based on religious beliefs, potentially affecting taxpayers who belong to discriminated groups.