CNA Staff, Apr 3, 2024 / 11:15 am
A federal appeals court has ruled that an institution’s tax-exempt status does not qualify as “federal assistance” under federal law, reversing a lower court ruling ordering a religious school to comply with federal Title IX regulations.
A former student of Concordia Prep, a Lutheran school serving grades 6–12 in Towson, Maryland, had brought suit against the institution in 2020, claiming that she had suffered bullying and sexual harassment at the school during her time there and that the school had violated Title IX federal sex-discrimination laws in its handling of those claims.
The school had argued in response that it was not subject to Title IX regulations since it does not accept federal financial assistance. Institutions are required to follow that federal rule if they receive funding from the federal government.
A lower court had ruled against the school, arguing that the school’s tax-exempt status, in and of itself, constituted a form of federal funding. But a three-judge panel at the U.S. Court of Appeals for the 4th Circuit reversed that decision, saying in a ruling last week that a 501(c)(3) tax-exempt status “does not constitute receipt of federal financial assistance.”