American Civil Liberties Union

Whether Arizona’s use of tax credits funneled through state-certified and state-supervised non-profits to award student scholarships based on religious criteria and for use in religious schools violates the Establishment Clause.

Arizona has created a unique system of funding religious instruction by allowing state-certified and state-supervised non-profits that exist for no other purpose to distribute taxpayer funds obtained through tax credits for student scholarships. A substantial portion of these taxpayer funds are distributed on the basis of religious criteria for use in religious schools. The ACLU represents a group of taxpayers who have challenged this system as a violation of the Establishment Clause.