Holy Loopholes: SCOTUS Lets Catholic Groups Dodge Unemployment Rules

When “Charity” Smells Like Church

In a unanimous decision that should make secular workers everywhere cringe, the U.S. Supreme Court ruled on June 5, 2025 that Catholic Charities Bureau in Wisconsin doesn’t have to pay into the state’s unemployment insurance system. Because nothing says “equal treatment under the law” like handing churches another tax break while the rest of us fork over our paychecks.

According to FFRF, this isn’t just a bureaucratic snafu—it’s a full-blown constitutional handout that lets religious groups skip out on supporting safety nets the rest of us rely on.

What’s the Case, Holy Grace?

The Catholic Charities Bureau, backed by the Diocese of Superior, argued they shouldn’t have to contribute to unemployment insurance because their work—housing, job training, disability services—is religious at its core. This, despite the fact that they don’t proselytize, don’t require prayer, and don’t hire exclusively within the faith. So basically, they’re running a nonprofit like any other… except they want the God-pass on taxes.

The state of Wisconsin said “nice try,” pointing out that these were secular services run like any standard nonprofit. But SCOTUS, in all its church-fluffing wisdom, decided that denying the exemption violated the First Amendment’s religious protections. Because in 2025, apparently, religious neutrality means religious immunity.

Supreme Court Says: Tax Rules? Not If You’ve Got a Bible

Writing for the Court, Justice Sonia Sotomayor stressed that Wisconsin was guilty of favoring “overtly religious” groups over those who express faith through social services. Translation: if your Jesus-shtick comes with food stamps instead of fire-and-brimstone, you’re still on holy ground.

According to SCOTUSblog, this kind of distinction “violates religious neutrality.” Which is legalese for: they found a divine loophole and called it constitutional.

Why Atheists—and Workers—Should Be Pissed

This decision doesn’t just let religious nonprofits duck their social responsibilities. It undermines workers’ rights—particularly those who don’t have the privilege of working for institutions that believe in social insurance. Imagine getting laid off from one of these “faith-based” gigs and finding out you’re not eligible for unemployment because your employer is #BlessedAndExempt.

The Freedom From Religion Foundation called it exactly what it is: another theocratic power grab, cloaked in the robes of “religious liberty.”

The Religious Right’s Golden Tax Ticket

Let’s not kid ourselves. This isn’t a one-off. It’s part of a broader pattern where religious freedom is less about protection and more about privilege. From Hobby Lobby’s birth control tantrum to public funds funneled into religious schools, this Court has made it crystal clear: the cross comes with perks.

Reuters even highlighted that this decision could pave the way for other religious groups to start opting out of all kinds of regulations—under the guise of spiritual mission.

Where’s the Line? (Spoiler: SCOTUS Erased It)

So let’s play this out. If Catholic Charities is religious enough to dodge taxes but secular enough to serve the general public, what’s to stop every other nonprofit with a vague “moral purpose” from claiming the same? What happens when private religious hospitals, schools, and even for-profit ventures start pulling the same stunt?

We’ve seen this before. It’s the old “we’re not religious—until we want to be” two-step. And now it’s backed by the highest court in the land.

Final Unholy Thought

The Supreme Court just gave religious nonprofits a get-out-of-taxes-free card. Again. And while they dress it up in constitutional jargon, it’s clear what’s going on: expanding theocracy by a thousand cuts. Every “exemption” chips away at the wall between church and state—and the rest of us are left cleaning up the rubble.

Because when religion becomes a legal shield, justice gets crucified.

Want a deeper dive on these kinds of constitutional clown shows? Read our breakdown on how Christian nationalism hides behind “freedom” or how prayer in public schools is making a comeback. And yeah, we’ve got more sarcasm where that came from.