Supreme Court Weighs Catholic Preschool Funding vs. LGBTQ Nondiscrimination Rules

Key points

• The Supreme Court heard arguments on November 3, 2026, in St. Mary Catholic Parish v. Roy, determining if Colorado’s universal preschool program violates the First Amendment by excluding Catholic schools that refuse to admit children of LGBTQ parents.
• The case pits religious freedom against state nondiscrimination laws, with the conservative majority potentially expanding exemptions for faith-based institutions.
• The Archdiocese of Denver and other plaintiffs argue that excluding them from the state-funded program based on their religious teachings about same-sex marriage violates their free-exercise rights.
• Colorado argues that the schools' refusal to admit children from LGBTQ families violates the state’s anti-discrimination law, which applies to all publicly funded preschools.
• The Trump administration supports the Catholic institutions, and a win for the preschools could further narrow the 1990 Employment Division v. Smith decision, which limits religious exemptions from neutral laws.

Background

This case follows a series of Supreme Court rulings since 2017 that have allowed taxpayer funds to flow to religious organizations, including schools, despite Establishment Clause prohibitions. In 2025, the court deadlocked over a publicly funded Catholic charter school after Justice Amy Coney Barrett recused herself. The current dispute arises from a 2020 ballot measure that created Colorado’s universal preschool program, which provides public funding for schools chosen by parents but requires adherence to nondiscrimination policies.

How outlets are covering it

AP News and NBC News emphasize the constitutional tension between the First Amendment’s free-exercise clause and state anti-discrimination laws, noting the conservative majority’s recent trend of favoring religious plaintiffs. The New York Times highlights the practical impact on families, such as the Sheleys, who cannot access over $12,000 in tuition assistance due to the exclusion. USA Today focuses on the potential for a broad ruling to create wider religious exemptions from nondiscrimination laws, while noting Justice Ketanji Brown Jackson’s concern that the plaintiffs seek a 'special rule' for religious schools. All sources agree that the case tests the limits of the 1990 Employment Division v. Smith precedent, with lower courts previously upholding Colorado’s policy.

Why it matters

The outcome could redefine the scope of religious exemptions from neutral, generally applicable laws, potentially allowing faith-based institutions to opt out of nondiscrimination requirements in other public programs. A ruling for the Catholic schools may further erode the Employment Division v. Smith precedent, which has long limited religious exemptions, while a ruling for Colorado would reinforce the principle that public funding comes with compliance to anti-discrimination standards. The case also reflects broader national debates over the balance between religious liberty and LGBTQ protections, with Colorado having been a frequent site for such disputes since 2018.

What to watch

A decision in St. Mary Catholic Parish v. Roy is expected by the end of June 2027. The ruling will determine whether Colorado must include Catholic preschools in its universal preschool program despite their refusal to admit children of LGBTQ parents, potentially setting a precedent for similar disputes in other states. The case may also influence future challenges to public funding programs that involve religious institutions and nondiscrimination policies.