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Supreme Court to Review Colorado's Exclusion of Catholic Preschools from Funding Program

The U.S. Supreme Court has agreed to hear a case challenging Colorado's decision to exclude certain Catholic preschools from a universal preschool funding program due to their faith-based policies. The case involves allegations of violations of the Free Exercise Clause. Arguments are scheduled for the Court's October 2026 term.

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1 source·Apr 24, 3:50 AM(5 days ago)·2m read
Supreme Court to Review Colorado's Exclusion of Catholic Preschools from Funding Programcatholicnewsagency.com
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The U.S. Supreme Court has granted certiorari in the case St. Mary Catholic Parish v. Roy, according to a report from @zerohedge. The case addresses whether Colorado can exclude Catholic preschools from a state-funded universal preschool program based on their religious admissions and operational policies.

The Court issued an unsigned order earlier this week, with no dissents noted, and limited its review to two questions from the petitioners' November 2025 petition. Arguments in the case are expected during the Court's term beginning in October 2026.

In 2020, Colorado voters approved Proposition EE, which established dedicated funding for a voluntary universal preschool program, as reported by @zerohedge. The state's Early Childhood Act and related rules created the UPK program, providing free preschool hours to families through participating public, private, or faith-based providers.

The program initially offered 15 hours per week and aimed to expand access and choice for families. To receive taxpayer funds, participating preschools must agree to a nondiscrimination policy that ensures equal opportunity for enrollment and services regardless of race, religious affiliation, sexual orientation, gender identity, income, disability, or other protected characteristics.

The program includes some preferences for certain groups, such as children of color, low-income families, those with disabilities, gender-nonconforming children, or families identifying as LGBTQ+.

preschools operated by the Archdiocese of Denver, including St. Mary Catholic Preschool in Littleton and Wellspring Catholic Academy/St. Bernadette’s in Lakewood, incorporate religious formation into their education, according to @zerohedge. These schools require families to support or respect Catholic teachings on faith, morals, sexuality, and gender, including doctrines on biological sex, marriage, and gender identity.

Enrollment policies may also address matters like bathroom use aligned with biological sex. The state determined that these practices violate the program's nondiscrimination requirements, particularly regarding sexual orientation, gender identity, and religious affiliation.

As a result, approximately 30 Catholic preschools under the Archdiocese were excluded, impacting over 1,500 children and families. @zerohedge reported that at least one preschool closed, and others saw enrollment drops of nearly 20% in some cases, leading families to pay out-of-pocket or select non-Catholic options.

2023, plaintiffs including two parishes, preschools, the Archdiocese of Denver, and parents Daniel and Lisa Sheley filed a lawsuit with representation from the Becket Fund for Religious Liberty, alleging violations of the Free Exercise Clause. A federal district court in 2024, following a bench trial, upheld the state's nondiscrimination requirement but enjoined enforcement related to religious affiliation due to program preferences, finding no broader First Amendment violation.

The appeals court stated that the rule is neutral and generally applicable under Employment Division v. Smith (1990), applying rational-basis review. It distinguished the case from Supreme Court precedents such as Trinity Lutheran, Espinoza, and Carson v.

Makin, which prohibit explicit discrimination based on religious status in public benefits, and found no evidence of anti-religious hostility unlike in Masterpiece Cakeshop. The 10th Circuit noted that Colorado's exemptions and discretion do not undermine the rule's general applicability, aligning with a minority position in a circuit split on such issues.

Key Facts

Supreme Court review
granted for two questions in religious funding case
Program exclusion
affected over 1,500 children at 30+ Catholic preschools
Lower court rulings
upheld state's nondiscrimination rule under rational-basis review
2020 voter approval
of Proposition EE for universal preschool funding
Circuit split
on exemptions undermining general applicability of laws

Story Timeline

5 events
  1. Earlier this week (April 2026)

    The U.S. Supreme Court granted certiorari in St. Mary Catholic Parish v. Roy.

    1 source@zerohedge
  2. September 30, 2025

    The 10th Circuit Court of Appeals unanimously affirmed the district court's ruling in favor of the state.

    1 source@zerohedge
  3. 2024

    A federal district court upheld Colorado's nondiscrimination requirement but enjoined enforcement on religious affiliation.

    1 source@zerohedge
  4. 2023

    Plaintiffs filed a lawsuit alleging Free Exercise Clause violations.

    1 source@zerohedge
  5. 2020

    Colorado voters approved Proposition EE to fund the universal preschool program.

    1 source@zerohedge

Potential Impact

  1. 01

    The Supreme Court's decision could set precedent on religious exemptions in state funding programs nationwide.

  2. 02

    The case may influence ongoing circuit split on Free Exercise Clause interpretations.

  3. 03

    Catholic preschools in Colorado may regain access to funding, potentially stabilizing enrollment.

  4. 04

    Other states might adjust nondiscrimination policies in education funding to align with the ruling.

  5. 05

    Families seeking faith-based preschool options could see expanded choices if exclusions are overturned.

Transparency Panel

Sources cross-referenced1
Framing risk25/100 (low)
Confidence score65%
Synthesized bySubstrate AI
Word count512 words
PublishedApr 24, 2026, 3:50 AM
Bias signals removed2 across 2 outlets
Signal Breakdown
Amplifying 1Editorializing 1

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