Posted by Eugene Volokh:
Freedom of Expressive Association and Government Subsidies:
http://volokh.com/archives/archive_2006_04_02-2006_04_08.shtml#1144190263


   I've just put up a new version of my [1]forthcoming Stanford Law
   Review article on the subject; it has two whole new sections, on the
   Establishment Clause and on state Religious Freedom Restoration Acts.
   The issue, as before, is whether the government may limit a subsidy to
   groups that don't discriminate based on various criteria, given that
   the groups may have a constitutional right to so discriminate (in the
   wake of Boy Scouts v. Dale). I think the answer is "yes"; I'm not a
   big fan of the antidiscrimination rules involved, but it seems to me
   they are indeed constitutional, even when applied to ideological
   groups that have ideological reasons to discriminate based on
   religion, sexual orientation, sex, race, ethnicity, and the like.
   Interestingly, the strongest argument for exemptions for those rules
   comes not under the First Amendment, but under state Religious Freedom
   Restoration Acts (see Part VI of the article).

   If you're up on the First Amendment or religious accommodation
   jurisprudence that touches on this subject -- and, better yet, the
   Court's jurisprudence on refusals to subsidize abortion, private
   schooling, and other constitutional rights, a jurisprudence that I
   rely on heavily in my piece -- I'd love to hear your views. I should
   say (realizing that beggars can't be choosers) that while there are
   lots of interesting broad philosophical issues that my topic touches
   on, I would prefer to get comments from people who have read (or at
   least skimmed) the paper, and who are up on the somewhat technical
   legal doctrines that the paper relies on.

References

   1. http://www.law.ucla.edu/volokh/association.pdf

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