Supreme Court strikes down state ban on taxpayer funding for religious schools

The Supreme Court on Tuesday struck down a ban on taxpayer funding for religious schools, in a narrow but significant win for the school choice movement.

In the 5-4 ruling, authored by Chief Justice John Roberts, the court essentially backed a Montana tax-credit scholarship program that gave residents up to a $150 credit for donating to private scholarship organizations, helping students pay for their choice of private schools. The state's revenue department made a rule banning those tax-credit scholarships from going to religious schools before the state's supreme court later struck down the entire program.

“A State need not subsidize private education. But once a State decides to do so, it cannot disqualify some private schools solely because they are religious," Roberts wrote in the court's opinion.

Under the program, a family receiving a scholarship originally could use it at any “qualified education provider,” which the court’s opinion noted means “any private school that meets certain accreditation, testing, and safety requirements." The Montana Department of Revenue, citing the state constitution, then changed the definition of "qualified education provider" to exclude those "owned or controlled in whole or in part by any church, religious sect, or denomination." This was over the objection of the state attorney general.

Parents of children attending a religious private school sued, and a lower court ruled in their favor, holding that the tax credits did not violate the state constitution because they were not appropriations made to religious institutions. The state supreme court overruled that decision and ordered the entire program to be scrapped.

"I feel that we're being excluded simply because we are people of religious background, or because our children want to go to a religious school," Kendra Espinoza, a lead plaintiff in the case, said after the U.S. Supreme Court heard oral arguments in the case in January. "We're here to stand up for our rights as people of faith to have the same opportunities that a secular schoolchild would have."