In Youth 71Five Ministries v. Willliams, (9th Cir., Aug. 18, 2025), a Christian youth program sued after the Oregon Department of Education's Youth Development Division withdrew the conditional award of a grant. Plaintiff requires that its board members, employees, and volunteers agree to a Christian Statement of Faith and be involved in a local church. The Division contended that this violates its religious non-discrimination policy. Plaintiff contended that the withdrawal violated its free exercise, religious-autonomy, and expressive-association rights.
The U.S. 9th Circuit Court of Appeals said in part:
... [T]he Rule does not deny funding based on a practice exclusive to religious organizations. Government agencies, secular corporations, and religious ministries alike might engage in religion-based employment discrimination....
Based on the evidence properly before the district court, it was not an abuse of discretion to conclude that the Division likely treats comparable secular and religious activity the same....
... 71Five argues that merely tailoring services to a target demographic is comparable to 71Five’s categorical exclusion of non-Christians. We disagree....
The Division adopted the Rule to, among other reasons, better reflect its “commitment to equitable access, equal opportunity, and inclusion.” That is a legitimate interest.... The Rule rationally furthers that interest by ensuring that Division-funded initiatives are equally open to employees, volunteers, and participants regardless of race, sex, religion, or any other protected characteristic. The district court therefore did not abuse its discretion in determining that 71Five is not likely to succeed on the merits of its free-exercise claim....
71Five claims that the Rule abridges its expressive association by requiring it to accept employees and volunteers “who disagree” with its message “or would express a contrary view.” ... We hold that 71Five has established that it is likely to succeed, at least in part. As to Division-funded initiatives, the Rule is likely permissible as a reasonable and viewpoint-neutral regulation of expressive association in a limited public forum—the Grant Program. But to the extent that it restricts 71Five’s selection of speakers to spread its Christian message through initiatives that receive no Division funding, the Rule likely imposes an unconstitutional condition....
71Five’s complaint does not allege a violation of any clearly established right under the First Amendment, so the Defendants are entitled to qualified immunity, and the district court did not err in dismissing 71Five’s damages claims with prejudice.
Judge Rawlinson concurred only in the judgment and did not join the majority's opinion, saying in part:
I concur in the judgment because, and only because, of our truncated review of a district court's decision granting or denying injunctive relief, and our obligatory deference to a district court's discretionary decision to decline consideration of arguments and evidence presented in a Reply Brief. ...
I decline to join the majority opinion's analysis because it relies heavily on the premise (mistaken, in my view), that Youth Five's website evidenced discrimination, while websites from the secular organizations applying for grants did not evidence discrimination....
[Thanks to Steven Sholk for the lead.]