Oregon’s Youth Development Division is responsible for administering the Youth Community Investment Grant Program, which is designed to support at-risk youth in order to promote educational success. To be eligible for funding for the program, applicants must certify that they do not discriminate in employment or admission on a variety of protected identities, including religion.
Youth 71Five Ministries, or 71Five, is a nonprofit Christian ministry whose stated purpose is described as to “teach and share about the life of Jesus Christ.” 71Five primarily runs youth centers, mentoring programs, and other community-oriented services. While it does in fact serve youth regardless of faith, it does require all employees to affirm a “Christian Statement of Faith” and verify that they have active involvement in a local church. For multiple years, Oregon’s YDD provided funding for 71Five’s programs. But after the implementation of the non-discriminatory hiring requirement, the state withdrew its public funding. 71Five then sued the state on the grounds that the withdrawal of the grant violated the Free Exercise Clause and autonomous religious practices.
The Ninth Circuit Court gave a mixed ruling after deciding on the case. It held that Oregon’s nondiscrimination rule was fundamentally neutral and generally applicable due to the fact that the rule applied to all who apply for public funding. Due to the grant’s rules being applied to both religious and secular institutions, it does not single out any particular religion for biased treatment. The Court also rejected 71Five’s claim of religious autonomy on the basis that ministerial exemptions serve to function as a defense in employment litigation, not as affirmative claims to unconditional public funds.
Ultimately, the court drew an important line: while Oregon could use conditional grants to enforce nondiscrimination requirements, it could not extend those requirements to 71Five’s privately funded programs. However, the ruling in this case brings up questions regarding expressive association status and unconstitutional conditions.
The strongest issue concerns expressive action and unconstitutional conditions. The Ninth Circuit Court mentioned Boy Scouts of America v. Dale’s ruling that organizations engaged in expressive activity must tailor their membership to support their ultimate purpose and message. 71Five argued that by not requiring active participation in a local church and the affirmation statement, the organization's religious expression might be altered. While the Ninth Circuit agreed in part, it ultimately stuck to its ruling that Oregon’s rule was reasonable and neutral, but any further extension beyond funded initiatives would violate the doctrine of unconstitutional conditions.
71Five also argued that it was excluded because of its religious status, invoking cases that were previously mentioned on this blog, such as Trinity Lutheran Church of Columbia, Inc. v. Comer, which prohibit the state from denying public funds based on religious status. The Ninth Circuit distinguished the differences between cases, establishing that Oregon did not deny 71Five funding because of their religious status, but because of their employment practices.
Personally, I find that the Ninth Circuit’s ruling was very persuasive. In regard to the neutrality of the law, Oregon’s grant framework would also disqualify an atheist group from public funds if it required employees to renounce their belief in a god. The symmetry of the rule supports the court’s ultimate conclusion that the state did not target a religious group in particular. Under the current doctrine, the Free Exercise Clause does not guarantee exemptions from neutral rules to obtain public funding.
Secondly, obtaining public funding generally carries obligations to the public. When a state grants public funds to serve at-risk youth, there is a legitimate state interest in ensuring that participation in the programs is not religiously cohesive. While I agree that the Constitution protects religious liberty from coercion, it does not guarantee exemptions to public funding based on religion.
However, the court was correct in limiting the state of Oregon’s authority beyond public grant programs. If the state could expand its conditional grants on the condition of abandoning its faith-based hiring practices across all operations, it would have significant financial leverage to reshape religious identities. The doctrine previously mentioned of the unconstitutional conditions doctrine exists to prevent that type of government overreach.
Ultimately, this case illustrates tensions between expanding religious institutions' ability to obtain public funds while maintaining neutral regulations. It will be interesting to see if and when this case is ruled on by the Supreme Court, as public funding surrounding religious institutions continues to be a relatively constant issue being brought up.

