U.S. Supreme Court building.March 23, 2016. Photo by Diego M. Radzinschi/THE NATIONAL LAWJOURNAL.

The U.S. Supreme Courton Mondaysidedwith a Missouri churchin a closely watched FirstAmendment case, ruling that states cannot exclude religiousinstitutions from obtaining funds from neutral government grantprograms.

The state's policyexpressly discriminates against otherwise eligible recipients bydisqualifying them from a public benefit solely because of theirreligious character, Chief Justice John Roberts Jr. wrote for themajority on the court's final sitting of the current term. Thepolicy puts Trinity Lutheran to a choice: It may participate in anotherwise available benefit program or remain a religiousinstitution.

The case,titledTrinityLutheran Church of Columbia v. Comer, was brought bythe church to challenge the state's exclusion of religiousorganizations from receiving state money from a program that useddiscarded tire scraps to resurface school playgrounds.

The7-2ruling marks Justice Neil Gorsuch's first participation in one ofthe high court's marquee cases, and was viewed as an early test ofhis views on church-state issues. As a judge on the U.S. Court ofAppeals for the Tenth Circuit, Gorsuch showed deference toreligious organizations on issues including the contraceptiverequirement in the Affordable Care Act and religious displays onpublic property.

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Justice SoniaSotomayor, joined by Justice Ruth Bader Ginsburg, dissented. Thiscase is about nothing less than the relationship between religiousinstitutions and the civil governmentthat is, between church andstate, Sotomayor wrote. The court today profoundly changes thatrelationship by holding, for the first time, that the Constitutionrequires the government to provide public funds directly to achurch.

The case was a keytest of so-called Blaine Amendments19th century enactmentsthat are still part of constitutions in 37 states, includingMissouriprohibiting the allocation of any state funds whatsoeverto churches or religious institutions. According toanInstitutefor Justice briefin the case, these amendments were theproduct of virulent post-Civil War anti-Catholic sentiment.

The church operates aschool for children age 2 to kindergarten. Alliance DefendingFreedom, which represents the church, told the high court that theexclusion sends a message that Trinity's children are less worthyof protection simply because they play on a playground owned by achurch.

But the state defendedthe prohibition, asserting that it did not impinge on the church'sreligious practice or freedom and serves a government interest innot having to choose which religious group should or should notreceive a benefit from a limited grant program.

Thepetitionin the casewas first filed in November, 2015, and thecourt granted certiorari in January 2016. The death of JusticeAntonin Scalia the next monthpromptedthe court to hold offhearing arguments in the case until anominee was confirmed to replace Scalia, probably to avoid a 4-4tie. Gorsuch was confirmed in April of this year, and the TrinityLutheran case was argued soon thereafter. As it turned out, thecourt would have sided with the church even without a ninthjustice.

Just days before theoral argument, recently elected Missouri Gov. Eric Greitensannounced a change in policy to allow religious schools to applyfor such grants in the future. The high court asked both sides tobrief whether the change affected the case, and both urged thecourt to continue, arguing that the governor's voluntary change wasnot necessarily permanent. The court apparently agreed, and thecase was argued.

David Cortman, seniorcounsel at Alliance Defending Freedom, argued the case for thechurch while James Layton of Tueth Keeney Cooper Mohan Jackstadt inSt. Louis, a former solicitor general for Missouri, argued for thestate.

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ContactTony Mauro attmauro@alm.com. OnTwitter:@Tonymauro