Supreme Court Appears Poised to Allow Catholic Preschool to Exclude LGBTQ Families from Funding

The U.S. Supreme Court heard oral arguments on Tuesday in a case that could reshape how states distribute public education funding. At the center of the dispute is St. Mary Catholic Parish, a preschool that was denied access to Colorado’s universal preschool program because it requires families to support the church’s teachings on sex and marriage.

St. Mary sued in 2023 after being denied a religious exemption from the state’s equal opportunity mandate, which requires schools receiving taxpayer dollars to be open to all. While two lower courts previously dismissed the lawsuit, the Supreme Court’s conservative supermajority suggested during the hearing that they are likely to reverse those decisions.

The Argument for Religious Exemptions

Conservative justices expressed concern that Colorado’s funding requirements could be used to intentionally discriminate against religious beliefs. Justice Samuel Alito suggested that if a state imposes conditions that it knows certain religious groups cannot accept, the court must determine if the intent was to discriminate against those religions.

Chief Justice John Roberts noted that the impact of the Colorado law is similar to previous cases where the court ruled that religious institutions could not be excluded from secular aid programs. Justice Neil Gorsuch suggested that states might be enacting these types of mandates specifically to circumvent the court’s protections for religious beliefs.

Concerns Over Discrimination

The court’s liberal wing argued that the school’s request would effectively greenlight discrimination against LGBTQ families. Justice Sonia Sotomayor warned that allowing this exclusion could lead to a situation where schools could bar children of same-sex parents or children with transgender feelings because of the perceived impact on other students.

Justice Ketanji Brown Jackson drew a comparison to racial discrimination, stating there is no principled basis to distinguish between a religious entity that refuses to educate children of gay people and one that refuses to educate Black children. Justice Elena Kagan described the school’s request as a demand for special treatment, questioning why the court should intervene in balancing religious beliefs against state nondiscrimination interests.

What This Means for Families

For parents and families, this case highlights a growing tension between religious liberty and state-mandated equal opportunity laws. If the Supreme Court rules in favor of St. Mary, it could establish a precedent where faith-based institutions receive public funding while maintaining admission policies that exclude LGBTQ families.

Families currently seeking enrollment in state-funded preschools may find that their access depends on whether a school’s religious criteria align with their own family structure. If you believe your family has been unlawfully excluded from a program, you may want to review the school’s admission policies and check if they are receiving state funding. Documenting the reasons given for any denial of enrollment can be a helpful step if you decide to seek legal advice regarding your rights under state and federal law.

Speaking with an attorney who specializes in civil rights or education law can help you understand whether a specific school’s policy violates local or state nondiscrimination requirements.

This article is general information based on Courthouse News Service and court or agency records available at publication time. It is not legal advice; laws and deadlines differ by state and by case. Published November 3, 2026.