Supreme Court Reviews Catholic Schools Challenge to Colorado Preschool Rules

A dispute over religious freedom and LGBTQ nondiscrimination protections reached the US Supreme Court on Tuesday, November 3, 2026, as two Catholic preschools in Colorado challenged state requirements for participation in a publicly funded early education program. The case could influence how governments balance constitutional religious protections with equal access to public services.

The plaintiffs, including the Archdiocese of Denver, argue that Colorado unfairly prevents religious schools from receiving taxpayer-funded preschool assistance because their admission policies reflect Catholic teachings on same-sex relationships and transgender identity.

Colorado's program, approved through a statewide referendum in 2020, provides financial support for parents to send their children to their preferred preschools. Eligible families can receive funding covering 15 hours of preschool each week.

State officials maintain that religious institutions can participate if they follow the same admission requirements imposed on other publicly funded providers. Colorado's position is that the program does not exclude religious schools but requires equal treatment of eligible children.

Colorado officials said religious institutions are permitted to participate and described the state's position as follows:

"remain welcome to participate in" the program, Colorado officials said.

The state also requires participating institutions to commit to equal admission opportunities:

"provide eligible children an equal opportunity to enroll and receive preschool services regardless of race, ethnicity, religious affiliation, sexual orientation, gender identity, lack of housing, income level, or disability"

The dispute previously went through lower courts, where an appeals court sided with Colorado. The lower court distinguished earlier Supreme Court decisions protecting religious institutions from categorical exclusion from public funding.

In discussing those precedents, the appeals court noted that states could not impose blanket restrictions on religious organizations:

"cannot categorically withhold those funds from religious institutions"

However, the appeals court concluded that Colorado had not excluded the Catholic preschools outright:

"did not exclude"

The court also emphasized that state officials had actively encouraged religious schools to participate:

"welcomed and actively solicited their participation"

The Archdiocese of Denver disputes that interpretation, arguing that the state's admission requirements effectively prevent Catholic schools from serving families whose circumstances conflict with church doctrine. Its legal challenge also questions exceptions allowing certain schools to prioritize particular groups.

The archdiocese argues that participating institutions receive permission to apply preferences to certain applicants:

"to discriminate in favor of LGBTQ families and other groups"

Its legal arguments also identify specific groups that it says receive preferential treatment:

"gender-nonconforming children"

"the LGBTQ community"

Nicholas Reaves, counsel at the Becket Fund for Religious Liberty, which represents religious interests in legal disputes, said the funding conditions prevent Catholic families from using public assistance at schools consistent with their beliefs.

Reaves told the National Catholic Reporter:

"denied families … the ability to use that funding at Catholic preschools, simply because those preschools have religious beliefs the state doesn’t like"

The US Conference of Catholic Bishops has also supported the challengers through a legal brief submitted to the Supreme Court. The organization argues that Colorado's requirements target religious institutions because of their adherence to church teachings.

The conference described the alleged basis for the state's decision:

"solely because of their adherence to Catholic doctrine"

It also warned that allowing the lower court's decision to stand could affect religious institutions in other jurisdictions:

"will embolden other states and municipalities to discriminate against religious adherents’ rights by enacting ostensibly neutral statutes that discriminate in fact"

The bishops further highlighted potential consequences for organizations providing social services:

"the resulting harm to the nation’s social support infrastructure would be immense."

The Catholic plaintiffs also have support from the Trump administration. Their lawyers at the Becket Fund described the dispute as a straightforward constitutional question in their court filing.

The lawyers called the case:

"uncomplicated,"

They argued that Colorado's actions directly affected the schools' religious practices:

"knowingly excluded Catholic preschools solely on account of their religious exercise."

Colorado Attorney General Phil Weiser, a Democrat, leads the state's legal defense. His office argues that the Catholic schools are seeking access to public money without accepting the conditions attached to the program.

The state's lawyers characterized the schools' position as an attempt to:

"want to receive public funding without complying with those conditions,"

A central disagreement concerns exceptions that allow participating preschools to prioritize children with disabilities and those from low-income households. The Catholic challengers argue that these exceptions contradict the state's broader equal-access requirement.

In their court papers, the challengers said those provisions:

"expressly conflict"

Colorado maintains that the exceptions serve legitimate public interests by ensuring disadvantaged children are not denied access to early education.

The Supreme Court will also consider the dispute against the background of earlier constitutional decisions. A 1990 ruling in Employment Division v. Smith established that religious exemptions are generally not required when laws apply equally to everyone.

In 2021, however, the court ruled that a Catholic organization could not be excluded from Philadelphia's foster care program because of its opposition to same-sex couples. The court has also issued decisions allowing religious organizations, including schools, to receive certain forms of public funding.

The Colorado lawsuit was filed in 2023 by the Archdiocese of Denver, St. Mary Catholic Parish in Littleton, Bernadette Catholic Parish in Lakewood, and parishioners Daniel and Lisa Sheley.

The Sheleys have seven children, including one attending preschool and another expected to enroll. Their lawyers say the family has been unable to access more than $12,000 in tuition assistance because they chose a church-operated preschool.

The Archdiocese of Denver operates 34 preschools across Colorado. Separately, preschools operated by Catholic Charities already participate in the state program because they operate under a different mission and do not require children to follow Catholic teachings.