Supreme Court to Review Religious Exemptions for Preschools Receiving State Funding

On November 3, 2026, the U.S. Supreme Court is scheduled to hear oral arguments in St. Mary Catholic Parish v. Roy. The case centers on Colorado’s universal preschool program, which provides funding to schools that agree to enroll children without discriminating based on factors such as religious affiliation, gender identity, or sexual orientation of the parents.

Two Catholic parish preschools and the Archdiocese of Denver filed a lawsuit under 42 U.S.C. § 1983. They argue that their religious beliefs require them to consider the sexual orientation and gender identity of a family when making admissions decisions. The plaintiffs are seeking an injunction against the state’s nondiscrimination requirement for preschool funding.

Lower Court Ruling and Legal Context

The U.S. Court of Appeals for the 10th Circuit previously upheld the Colorado law. The court applied the standard set in Employment Division v. Smith, which holds that the First Amendment does not generally grant religious exemptions from neutral laws that apply to everyone. The 10th Circuit determined that Colorado’s program is a neutral, generally applicable law that does not target religion and applies equally to all participating institutions.

Questions Before the Supreme Court

The Supreme Court has agreed to address two specific legal questions. First, the Court will consider whether proving that a law lacks “general applicability” requires showing that the government granted specific secular exemptions or had unfettered discretion. Second, the Court will examine whether its decision in Carson v. Makin—which held that the government cannot deny funding to religious schools if it provides that same funding to secular private schools—overrides the Smith rule only when the government explicitly targets religious institutions.

Impact on Families and Schools

This case is significant because it touches on the tension between religious liberty and anti-discrimination protections. If the Supreme Court decides to overrule or significantly limit Employment Division v. Smith, it could change how religious organizations interact with state-funded programs. For ordinary families, this means that the rules for preschool enrollment could shift, potentially allowing religious schools to maintain state funding while declining to admit children based on their parents’ sexual orientation or gender identity.

The outcome of this case may determine whether state-funded preschools can be required to follow nondiscrimination policies that conflict with their religious doctrines. Families who believe they have been unfairly denied enrollment in a state-funded program may wish to monitor the Court’s decision to see how it affects their rights under state law.

When to Consult a Lawyer

If you believe you have been denied access to a public or state-funded service due to discrimination, or if you are an organization navigating the requirements of government-funded programs, speaking with an attorney can help you understand your legal standing. A lawyer can provide guidance on how current Supreme Court precedents and state-specific anti-discrimination statutes apply to your situation.

This article is general information based on SCOTUSblog and court or agency records available at publication time. It is not legal advice; laws and deadlines differ by state and by case. Published October 20, 2026.