The Supreme Court’s unanimous decision in Catholic Charities Bureau v. Wisconsin set a clear First Amendment boundary: states may not condition a religious tax exemption on whether a ministry proselytizes or serves only co-religionists. Justice Sotomayor’s opinion framed the problem as denominational discrimination because the test effectively favored certain theological models of religious work over others.
The case then returned to Wisconsin on remand, and the dispute shifted from merits to remedy. Wisconsin’s Attorney General argued the state could cure the constitutional defect in one of two ways: either extend the exemption to include Catholic Charities, or eliminate the exemption entirely so no religious nonprofits receive it. Catholic Charities took the position that the ordinary cure for unconstitutional discrimination is equal treatment by inclusion, not by withdrawing benefits from organizations not before the court.
Wisconsin’s Supreme Court has now acted. In a December 15, 2025 order, the court concluded that, in light of the U.S. Supreme Court’s holding, Catholic Charities is eligible for the exemption.
In the end, Catholic Charities secured what the First Amendment demands: equal treatment, confirmed unanimously by the U.S. Supreme Court. It is a hard-fought and significant victory for religious organizations nationwide.
Read Order Here: Catholic Charities Bureau v. Wisconsin