U.S. Supreme Court Says Religion Ban in Montana’s Education Tax Credit Program Is Unconstitutional
Jul 3, 2020
In a 5 to 4 decision, the U.S. Supreme Court ruled Tuesday that a provision in Montana’s Constitution prohibiting state aid to religious organizations could not prevent taxpayers from obtaining a state tax credit for contributions made to private parochial schools that are used to provide scholarships for eligible students when a credit is available for contributions made to other types of private schools.
The decision said that making state-funded private school scholarships off-limits to parochial schools violated First Amendment’s Free Exercise Clause because the tax program treats private religious and secular schools differently.
Chief Justice John Roberts, writing for the majority, said, “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.”
The case originated in 2015 when the Montana state legislature passed a bill incentivizing individuals via a dollar-for-dollar tax credit to donate to organizations that provide scholarship money to students wanting to attend private schools. Not long after its passage, the Montana Department of Revenue implemented rules to bar tax dollars from going to religious private schools. The rule was in keeping with the “no-aid” provision in the state’s constitution prohibiting state funds from directly or indirectly aiding any religious organization. According to National Public Radio, 70 percent of Montana’s private schools are religious.
Prior to the U.S. Supreme Court’s ruling, the Montana Supreme Court had held that the entire tax credit program for all private schools violated the no-aid provision in the state’s Constitution.
