"The debate over government funding of religious groups and institutions raises some of the thorniest issues in the ongoing discussion about the appropriate relationship between church and state. Most legal scholars agree that the Establishment Clause in the First Amendment to the U.S. Constitution limits at least some government funding of religion, but they disagree sharply on exactly what is permissible.
Participants in the debate fall roughly into two camps: On the one side are "separationists," who broadly interpret the Establishment Clause -- which prohibits all laws "respecting an establishment of religion" -- to require that government refrain from aiding or promoting religion or religious institutions. Strict separationists therefore claim that most, or even all, government funding of religion is unconstitutional. On the other side are those who interpret the Establishment Clause much more narrowly, contending that government funding of religion is constitutional as long as the funding is neutral, meaning it does not favor religion over non-religion or favor a particular faith over other faiths." Source: Pew Forum on Religion & Public Life
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