Arizona Christian School Tuition Organization v. Winn

In 1997, the Arizona legislature enacted a statute that allows Arizona taxpayers to donate private funds to a “school tuition organization” (STO) of their choice. The taxpayer may then claim a credit on their state income tax obligation for the amount donated, up to certain limits.

Arizona Christian School Tuition Organization (ACSTO), represented by ADF, is one such STO that provides scholarships through private donations for families who want to send their children to private schools but can’t afford the higher tuition. Opponents of this program, represented by the ACLU, challenged it, alleging a violation of the Establishment Clause simply because religious schools can participate in this program alongside secular schools.

The Supreme Court ruled 5-4 to dismiss the ACLU’s lawsuit, stating that taxpayers who didn’t like the program had no legal injury to challenge how private organizations used funds donated by private individuals. The decision created a national precedent that protects school-choice programs from unfounded legal attacks and thereby supports parental rights to choose the best school for their children, including private schools that share their religious beliefs.

Case timeline

• February 2000: The ACLU filed a lawsuit on behalf of a group of Arizona taxpayers alleging Arizona’s tuition tax credit was unconstitutional because religious schools were allowed to participate in the program.
• March 2005: The Arizona federal district court granted a motion to dismiss the case, ruling that the taxpayers had no standing to sue over the tuition tax credit.
• April 2009: The U.S. Court of Appeals for the 9th Circuit reversed the district court’s decision. The appeals court ruled the Arizona taxpayers had standing to sue and that the case should be allowed to move forward.
• May 2009: ADF attorneys filed a petition asking for the case to be reheard by the full 9th Circuit.
• October 2009: The 9th Circuit denied the petition to rehear the case, but seven judges disagreed and thought the case should be reheard.
• February 2010: ADF attorneys asked the U.S. Supreme Court to grant review of the 9th Circuit’s decision.
• May 2010: The Supreme Court agreed to hear the case.
• April 2011: The Supreme Court reversed the 9th Circuit’s ruling in a 5-4 decision and dismissed the lawsuit brought by the ACLU, who represented the Arizona taxpayers. It ruled the taxpayers did not have standing to sue over the tuition tax credit, thus allowing religious schools, and the Arizona families they serve, to continue benefiting from the program.