Espinoza v. Montana Department of Revenue

In 2015, Montana created a tax-credit scholarship program allowing donors to receive up to a $150 credit for contributions to scholarship organizations, with scholarships usable at private schools. The Montana Department of Revenue issued a rule excluding religious schools, citing the state constitution's no-aid provision. Three mothers — Kendra Espinoza, Jeri Ellen Anderson, and Jaime Schaefer — sued after their children were denied scholarships to attend Stillwater Christian School. The Montana Supreme Court struck down the entire program as unconstitutional under the state constitution. The U.S. Supreme Court reversed in a 5-4 decision on June 30, 2020, holding that the exclusion of religious schools from a generally available public benefit violated the Free Exercise Clause.

The U.S. Supreme Court ruled 5-4 in favor of Espinoza, reversing the Montana Supreme Court. Chief Justice Roberts wrote the majority opinion, joined by Justices Thomas, Alito, Gorsuch, and Kavanaugh. The Court held that Montana's no-aid provision, as applied to exclude religious schools from the scholarship program, violated the Free Exercise Clause. The decision did not require states to subsidize private education but ruled that if a state chooses to do so, it cannot disqualify religious schools solely because of their religious status. Justices Ginsburg, Breyer, Sotomayor, and Kagan dissented.

Whether a state constitutional no-aid provision that bars religious schools from participating in a tax-credit scholarship program violates the Free Exercise Clause of the First Amendment. The central question was whether the exclusion of religious schools from a generally available public benefit constitutes religious discrimination requiring strict scrutiny.

The ruling was a landmark victory for school choice and religious liberty advocates, potentially affecting similar no-aid provisions in many states. Supporters celebrated it as a blow against anti-religious discrimination and a step toward greater educational options. Critics, including teachers' unions and public education officials, warned it could divert funding from public schools and force taxpayers to support religious education. The decision intensified national debates over school vouchers, the separation of church and state, and the scope of the Free Exercise Clause.