Catholic Charities Bureau, Inc. v. Wisconsin Labor and Industry Review Commission

In this case, the court considered this issue: Does a state violate the First Amendment’s religion clauses by denying a religious organization an otherwise-available tax exemption because the organization does not meet the state’s criteria for religious behavior?The case was decided on June 5, 2025. In a unanimous decision on June 5, 2025, the U.S. Supreme Court ruled in Catholic Charities Bureau, Inc. v Wisconsin Labor and Industry Review Commission, affirming that the Catholic Charities Bureau (CCB) is entitled to an exemption from Wisconsin's unemployment insurance tax. The Court held that the state's refusal to grant this exemption violated the First Amendment by discriminating against religious organizations that do not engage in overt religious activities.Justice Sonia Sotomayor authored the opinion, emphasizing that Wisconsin's approach improperly favored organizations that proselytize or serve only co-religionists, thereby violating the principle of government neutrality in religious matters. The Court noted that CCB's mission, while providing secular services such as housing and job training, is rooted in Catholic teachings and operates under the auspices of the Catholic Diocese of Superior. The decision underscores that religious organizations cannot be denied exemptions based solely on the secular nature of their services.This ruling aligns with the Court's broader trend of expanding religious liberties and may have implications for other religiously affiliated organizations seeking similar exemptions.The opinion is presented here in its entirety, but with citations omitted. If you appreciate this episode, please subscribe. Thank you.